17 Jul 2014
EUR weakness intensify - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, notes the EUR accelerated its downside post-Yellen's testimony.
Key Quotes
"Euro bears saw the single currency weaken yesterday, particularly against the USD, as Fed Chair Yellen's most hawkish comments to date, in Tuesday's Q+A with the senate, opened the door to a faster pace of Fed rate hikes, if the US labour market continues to improve more rapidly than expected".
"Although an obvious enough comment, the more hawkish implications (from an otherwise largely consistent rhetoric) gave the masses what they wanted, a reason to sell EUR and buy USD. Churning down to the 1.3520s we approach the post June ECB meeting lows around 1.3505, where President Draghi enacted extraordinary easy policy measures."
Key Quotes
"Euro bears saw the single currency weaken yesterday, particularly against the USD, as Fed Chair Yellen's most hawkish comments to date, in Tuesday's Q+A with the senate, opened the door to a faster pace of Fed rate hikes, if the US labour market continues to improve more rapidly than expected".
"Although an obvious enough comment, the more hawkish implications (from an otherwise largely consistent rhetoric) gave the masses what they wanted, a reason to sell EUR and buy USD. Churning down to the 1.3520s we approach the post June ECB meeting lows around 1.3505, where President Draghi enacted extraordinary easy policy measures."