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15 Aug 2013
Flash: EUR/USD should survive dives towards 1.3150 next week – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac analyzes outlook of the EUR/USD.
Key quotes
“The EUR proving oddly weak despite clear signs that activity across the region is stabilizing (e.g. ZEW survey, Q2 GDP) and despite further steady in sovereign risk premiums (e.g. ESP-DEM 2yr spreads hit fresh 28 month lows this week).”
“EUR/USD though should survive any skirmishes into 1.3150-1.3200 next week amid probably better than expected advance Aug EZ PMIs. By the same token topside momentum will likely be stymied by the FOMC minutes that should reinforce tapering expectations.”
“Longer-term still expect EUR to break through the lower end of its now 6 month 1.2750-1.3400 range given more severe structural headwinds to growth in the Eurozone vs the US (e.g. bank deleveraging, lack of credit demand, austerity) and the still combustible peripheral environment which should include a new Greek bailout later in the year.”
Key quotes
“The EUR proving oddly weak despite clear signs that activity across the region is stabilizing (e.g. ZEW survey, Q2 GDP) and despite further steady in sovereign risk premiums (e.g. ESP-DEM 2yr spreads hit fresh 28 month lows this week).”
“EUR/USD though should survive any skirmishes into 1.3150-1.3200 next week amid probably better than expected advance Aug EZ PMIs. By the same token topside momentum will likely be stymied by the FOMC minutes that should reinforce tapering expectations.”
“Longer-term still expect EUR to break through the lower end of its now 6 month 1.2750-1.3400 range given more severe structural headwinds to growth in the Eurozone vs the US (e.g. bank deleveraging, lack of credit demand, austerity) and the still combustible peripheral environment which should include a new Greek bailout later in the year.”