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14 Nov 2013
Flash: EUR/USD holds neutral bias for week ahead - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that EUR/USD looks neutral for the week ahead and will trade within a range of 1.3300-1.3600.
Key Quotes
“The euro has rebounded modestly over the past week against the US dollar after falling sharply in advance of the ECB refi rate cut. The release of the stronger than expected US employment report for October, which has brought forward Fed QE tapering expectations, have weighed only modestly upon EUR/USD.”
“The resilience of the euro over the past week suggests that a large part of the overshoot correction is now complete. With further ECB monetary easing unlikely in the coming months, it is likely that Fed QE tapering expectations will now primarily drive EUR/USD direction in the near-term.”
“Fed Chair-elect Janet Yellen’s testimony before the Senate Banking Committee today is expected to generally support the Fed’s current loose policy stance without providing any specific signals over future policy direction, which may weigh only modestly upon the US dollar.”
“In the week ahead there are a number of Fed speakers including Chairman Bernanke and the FOMC minutes from October are also released. In Europe, the focus in the week ahead will be upon the release of the euro-zone PMI surveys for November and the EU finance ministers meeting.”
Key Quotes
“The euro has rebounded modestly over the past week against the US dollar after falling sharply in advance of the ECB refi rate cut. The release of the stronger than expected US employment report for October, which has brought forward Fed QE tapering expectations, have weighed only modestly upon EUR/USD.”
“The resilience of the euro over the past week suggests that a large part of the overshoot correction is now complete. With further ECB monetary easing unlikely in the coming months, it is likely that Fed QE tapering expectations will now primarily drive EUR/USD direction in the near-term.”
“Fed Chair-elect Janet Yellen’s testimony before the Senate Banking Committee today is expected to generally support the Fed’s current loose policy stance without providing any specific signals over future policy direction, which may weigh only modestly upon the US dollar.”
“In the week ahead there are a number of Fed speakers including Chairman Bernanke and the FOMC minutes from October are also released. In Europe, the focus in the week ahead will be upon the release of the euro-zone PMI surveys for November and the EU finance ministers meeting.”