1 Dec 2014
Further consolidation seen for EUR/USD – KBC
FXStreet (Barcelona) - The KBC Bank Research Desk sees the EUR/USD pair consolidation further within the 1.2358/1.2600 range.
Key Quotes
“In a day-to-day perspective, we expect EUR/USD to stay in well-known 1.24/1.25 territory. For now, the different policy stances between the ECB and the Fed had hardly any impact on EUR/USD. The global flood of liquidity is keeping USD yields under downward pressure, too. So, the dollar doesn’t receive any additional interest rate support against the euro”
“For EUR/USD, further consolidation within the 1.2358/1.2600 range might be on the cards. Recently, we already indicated that a swift break lower in EUR/USD wouldn’t be that easy, even in case the data point in that direction. This assessment remains valid.“
“This week’s early month US eco data might decide whether there is room for a new USD upleg going into the end of the year. We have the impression that the US data will have to be very strong to inspire such a move.”
Key Quotes
“In a day-to-day perspective, we expect EUR/USD to stay in well-known 1.24/1.25 territory. For now, the different policy stances between the ECB and the Fed had hardly any impact on EUR/USD. The global flood of liquidity is keeping USD yields under downward pressure, too. So, the dollar doesn’t receive any additional interest rate support against the euro”
“For EUR/USD, further consolidation within the 1.2358/1.2600 range might be on the cards. Recently, we already indicated that a swift break lower in EUR/USD wouldn’t be that easy, even in case the data point in that direction. This assessment remains valid.“
“This week’s early month US eco data might decide whether there is room for a new USD upleg going into the end of the year. We have the impression that the US data will have to be very strong to inspire such a move.”