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11 Mar 2015
Further downside on the cards for EUR/USD – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, believes a consolidation phase could precede another leg lower in the pair.
Key Quotes
“EUR is weak, having lost a further 1.25% during the European session, bringing its year‐to‐date losses to 13% and its losses since its May 2014 high to 25%”.
“The catalyst of today’s depreciation falls along the recurring theme of policy divergence, coupled with sentiment and technicals”.
“In comments today, President Draghi suggested that since the launch of QE there is evidence of improvement in several European indicators; however full implementation of the program will be important”.
“For EUR the risk is that parity begins to act as a magnet, however for that to materialize we’d need to see a materially hawkish Fed and a lack of momentum in the European high frequency growth data releases”.
Key Quotes
“EUR is weak, having lost a further 1.25% during the European session, bringing its year‐to‐date losses to 13% and its losses since its May 2014 high to 25%”.
“The catalyst of today’s depreciation falls along the recurring theme of policy divergence, coupled with sentiment and technicals”.
“In comments today, President Draghi suggested that since the launch of QE there is evidence of improvement in several European indicators; however full implementation of the program will be important”.
“For EUR the risk is that parity begins to act as a magnet, however for that to materialize we’d need to see a materially hawkish Fed and a lack of momentum in the European high frequency growth data releases”.