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11 Nov 2014
EUR/USD downmove is likely to extend to 1.22 - WIB
FXStreet (Barcelona) - The Westpac Global Strategy Group view EUR/USD as heavy even as some data points (e.g. PMIs) begin to show tentative signs of stability and resentment, and forecast it to reach 1.22.
Key Quotes
“EUR/USD remains heavy even as some data points (e.g. PMIs) begin to show tentative signs of stability and resentment with Draghi’s policy path from the conservative faction of the ECB Governing Council lingers despite his stronger language at the Nov meeting.”
“These developments should have offered more support for EUR than has been the case. Despite that, yield spreads continue to push against EUR/USD, anchoring the pair lower. EUR/USD downmove is likely to extend to 1.22 on this leg. EUR may fare better on select European crosses though.”
Key Quotes
“EUR/USD remains heavy even as some data points (e.g. PMIs) begin to show tentative signs of stability and resentment with Draghi’s policy path from the conservative faction of the ECB Governing Council lingers despite his stronger language at the Nov meeting.”
“These developments should have offered more support for EUR than has been the case. Despite that, yield spreads continue to push against EUR/USD, anchoring the pair lower. EUR/USD downmove is likely to extend to 1.22 on this leg. EUR may fare better on select European crosses though.”