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30 Dec 2014
EUR/USD bearish momentum accelerating – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, expects the EUR/USD pair to dive towards 1.2043 and 1.1877 lows as bearish momentum indicators show signs of acceleration.
Key Quotes
“EUR is flat, having recovered from fresh lows around the start of the NA session as market participants provided support in reaction to stronger retail sales data from Spain and strengthened euro area lending data while disregarding expectedly soft Spanish CPI.”
“The recent catalyst for EUR weakness has been the resurgence of political risk in Greece, driving the 10Y yield toward 10% with softened equity markets across the euro area hinting to outflows.”
“For EUR, we look to the 2012 and 2010 lows at 1.2043 and 1.1877, respectively, as we note that bearish momentum indicators are showing signs of acceleration.”
Key Quotes
“EUR is flat, having recovered from fresh lows around the start of the NA session as market participants provided support in reaction to stronger retail sales data from Spain and strengthened euro area lending data while disregarding expectedly soft Spanish CPI.”
“The recent catalyst for EUR weakness has been the resurgence of political risk in Greece, driving the 10Y yield toward 10% with softened equity markets across the euro area hinting to outflows.”
“For EUR, we look to the 2012 and 2010 lows at 1.2043 and 1.1877, respectively, as we note that bearish momentum indicators are showing signs of acceleration.”