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26 Feb 2015
EUR/USD neutral bias for the week ahead – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, views that EUR/USD stability is likely to persist in the near-term, maintaining a neutral bias for the pair, expecting the 1.1200-1.1500 range to stand in the week ahead.
Key Quotes
“The euro is continuing to stabilize at lower levels against the US dollar. The semi-annual testimony from Fed Chair Yellen and the agreement to extend financial support to Greece have both contributed to maintaining a more stable EUR/USD rate.”
“National parliaments will now have to ratify the new agreement to extend financial support to Greece, which is expected to pass without complications. The extension of financial support to Greece has at least temporarily helped to dampen Grexit concerns and downside risks for the euro.”
“The US dollar is also struggling to regain upward momentum in the near-term. Fed Chair Yellen’s semi-annual testimony failed to provide a trigger for further US dollar upside. There was no clear signal that rate hikes are imminent although it indicated that the Fed is moving closer to tightening policy.”
“Fed policy will become more data dependent when the “patient” guidance is dropped.”
“Economic data released in the week ahead may weigh modestly on the US dollar revealing both that inflation has moved further below the Fed’s target and the US economy has lost some upward momentum.”
"EUR/USD – Neutral Bias – (1.1200-1.1500)"
Key Quotes
“The euro is continuing to stabilize at lower levels against the US dollar. The semi-annual testimony from Fed Chair Yellen and the agreement to extend financial support to Greece have both contributed to maintaining a more stable EUR/USD rate.”
“National parliaments will now have to ratify the new agreement to extend financial support to Greece, which is expected to pass without complications. The extension of financial support to Greece has at least temporarily helped to dampen Grexit concerns and downside risks for the euro.”
“The US dollar is also struggling to regain upward momentum in the near-term. Fed Chair Yellen’s semi-annual testimony failed to provide a trigger for further US dollar upside. There was no clear signal that rate hikes are imminent although it indicated that the Fed is moving closer to tightening policy.”
“Fed policy will become more data dependent when the “patient” guidance is dropped.”
“Economic data released in the week ahead may weigh modestly on the US dollar revealing both that inflation has moved further below the Fed’s target and the US economy has lost some upward momentum.”
"EUR/USD – Neutral Bias – (1.1200-1.1500)"