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14 Jan 2015
EUR short-term risks towards 1.1640 – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, remains short EUR/USD, expecting the pair to test 1.1640 levels heading into the ECB meeting.
Key Quotes
“EUR has fallen to fresh lows as the EU court rules in favour of the OMT program and bearish sentiment continues to build. The next major level in EUR is the 2005 lows of 1.1640.”
“Rumours today are that President Draghi will meet with both Chancellor Merkel and FinMin Schaeuble leading into the ECB meeting.”
“Fundamental data came in with stronger industrial production than expected +0.2%m/m and higher French CPI than expected, with both headline and core up 0.1%m/m. The focus is on the likely steps the ECB will take at its January 22nd meeting, with the positive growth impact of lower oil prices fully ignored currently.”
“We expect EUR to trend lower into the ECB meeting, making a test of the 1.1640 level.”
“EURUSD short‐term technicals: bearish—all studies warn of downside risk with technical levels fairly light until the 2005 lows of 1.1640. We favour being short EURUSD.”
Key Quotes
“EUR has fallen to fresh lows as the EU court rules in favour of the OMT program and bearish sentiment continues to build. The next major level in EUR is the 2005 lows of 1.1640.”
“Rumours today are that President Draghi will meet with both Chancellor Merkel and FinMin Schaeuble leading into the ECB meeting.”
“Fundamental data came in with stronger industrial production than expected +0.2%m/m and higher French CPI than expected, with both headline and core up 0.1%m/m. The focus is on the likely steps the ECB will take at its January 22nd meeting, with the positive growth impact of lower oil prices fully ignored currently.”
“We expect EUR to trend lower into the ECB meeting, making a test of the 1.1640 level.”
“EURUSD short‐term technicals: bearish—all studies warn of downside risk with technical levels fairly light until the 2005 lows of 1.1640. We favour being short EURUSD.”