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14 Apr 2015
EUR downside to slow the pace – Westpac
FXStreet (Edinburgh) - Strategists at Westpac suggest the single currency could slow its pace southwards in the upcoming periods.
Key Quotes
“EUR remains torn by on the one hand ECB QE and on the other the relentless run of softer US data”.
“We had been of the view that EUR would establish a beach-head above 1.10 in the weeks ahead but EUR's price action post the soft NFP report has been woeful”.
“There's no doubt market participants are looking beyond a soft Q1 for the US too and hopeful of better growth in Q2”.
“By our reckoning about half the slowdown is due to one time negatives (port congestion and weather) while the balance is a function of more enduring forces like a strong USD”.
“Early Q2 data should thus show a good bounce but one that may well fall short of hopes”.
“Break below the 61.8% retrace at 1.0685 negated the recent upswing. New lows in 2015 have lacked momentum backing, hence we expect a further decline to be slow and steady”.
Key Quotes
“EUR remains torn by on the one hand ECB QE and on the other the relentless run of softer US data”.
“We had been of the view that EUR would establish a beach-head above 1.10 in the weeks ahead but EUR's price action post the soft NFP report has been woeful”.
“There's no doubt market participants are looking beyond a soft Q1 for the US too and hopeful of better growth in Q2”.
“By our reckoning about half the slowdown is due to one time negatives (port congestion and weather) while the balance is a function of more enduring forces like a strong USD”.
“Early Q2 data should thus show a good bounce but one that may well fall short of hopes”.
“Break below the 61.8% retrace at 1.0685 negated the recent upswing. New lows in 2015 have lacked momentum backing, hence we expect a further decline to be slow and steady”.