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12 Aug 2013
Flash: EUR/USD headed for 1.3460/35? – BBH
FXstreet.com (New York) - The EUR/USD is at the crossroads as a breakout in either direction may usher in a new range for the pair, notes BBH Global Currency Strategy Team.
Key quotes
The EUR/USD bounced a cent in response to the US employment report and another cent last week to stop just shy of the June high near 1.3420. We have suggested that the break out from a possible diamond pattern projects into the 1.3460-1.35 area.
“At the same time, a mild correction to the post-jobs report rally can see the euro ease back into the 1.3270-1.3300 area.”
“While the EUR/USD rallied two cents in the past two weeks, the GBP/USD has gained as well, helped of course, by a powerful short squeeze, fueled by forward guidance regime that embraced the recent data as evidence that a recovery is underway.”
“While low rates will be maintained (until the economy improves to an extent that it does not forecast likely for three more years), additional action is unlikely. Moreover, the conditions for maintaining low interest rates were such as to seem to diminish its commitment.”
Key quotes
The EUR/USD bounced a cent in response to the US employment report and another cent last week to stop just shy of the June high near 1.3420. We have suggested that the break out from a possible diamond pattern projects into the 1.3460-1.35 area.
“At the same time, a mild correction to the post-jobs report rally can see the euro ease back into the 1.3270-1.3300 area.”
“While the EUR/USD rallied two cents in the past two weeks, the GBP/USD has gained as well, helped of course, by a powerful short squeeze, fueled by forward guidance regime that embraced the recent data as evidence that a recovery is underway.”
“While low rates will be maintained (until the economy improves to an extent that it does not forecast likely for three more years), additional action is unlikely. Moreover, the conditions for maintaining low interest rates were such as to seem to diminish its commitment.”