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4 Dec 2014
What’s the sentiment around EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The bearish tone prevails around the single currency today, dragging spot to test sub-1.2300 levels ahead of the key ECB meeting.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD has broken down from a descending triangle into 2 year lows and continues to target the 200 month ma at 1.2232. The market remains under pressure while capped near term by the 1.2471 3 month downtrend”.
“The EUR dropped yesterday against all G10 currencies and it might bounce a little if we are right that the ECB will not announce more easing today. However, given our call for yet another strong US labour market report tomorrow where we expect non-farm payrolls to increase by 240K, we expect any bounce in EUR/USD to be short lived”, observed Pernille Nielsen, Senior Analyst at Danske Bank.
In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “EUR/USD has broken down from a descending triangle into 2 year lows and continues to target the 200 month ma at 1.2232. The market remains under pressure while capped near term by the 1.2471 3 month downtrend”.
“The EUR dropped yesterday against all G10 currencies and it might bounce a little if we are right that the ECB will not announce more easing today. However, given our call for yet another strong US labour market report tomorrow where we expect non-farm payrolls to increase by 240K, we expect any bounce in EUR/USD to be short lived”, observed Pernille Nielsen, Senior Analyst at Danske Bank.