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24 Feb 2014
Flash: What’s the sentiment around the EUR/USD today? – Westpac and Danske Bank
FXStreet (Edinburgh) - The shared currency is trading in the upper end of today’s range so far, hovering over 1.3745/50 ahead of the German IFO and EMU’s consumer prices due later.
“We still think that persistently low inflation in the euro-zone will be the main driver behind further easing. However, last week also showed that European PMIs might have peaked in January, which puts pressure on the ECB to act and thus the release of German IFO survey data might prove to be directional for EUR/USD today”, commented Jens Pedersen, Analyst at Danske Bank.
In addition, the research team et Westpac Global Strategy Group suggested “The euro will take its cue from advance Feb inflation (Fri), with a weak read likely to raise ECB easing expectations for March… Ongoing failure of US economists to forecast the full weather impact on data should continue this week, damaging USD and thus keeping EUR/USD within striking distance of key 1.3795 resistance”.
“We still think that persistently low inflation in the euro-zone will be the main driver behind further easing. However, last week also showed that European PMIs might have peaked in January, which puts pressure on the ECB to act and thus the release of German IFO survey data might prove to be directional for EUR/USD today”, commented Jens Pedersen, Analyst at Danske Bank.
In addition, the research team et Westpac Global Strategy Group suggested “The euro will take its cue from advance Feb inflation (Fri), with a weak read likely to raise ECB easing expectations for March… Ongoing failure of US economists to forecast the full weather impact on data should continue this week, damaging USD and thus keeping EUR/USD within striking distance of key 1.3795 resistance”.