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2 Mar 2015
EUR/USD breach of 1.1098 likely this week – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, expects a strong jobs report in US and a rise in short-term yields to support EUR/USD to break below the 1.1098 low this week.
Key Quotes
“The EUR/USD rate fell toward the end of last week and is within a big figure of the post-QE announcement low of 1.1098. We suspect that a breach of this low this week is more likely to come from developments on the US side rather than on the euro-zone side.”
“Hence, a strong jobs report and a rise in short-term US yields are probably required for a new low this week - that is certainly feasible although the cold snap in the US throws an element of uncertainty into the key jobs data on Friday.”
Key Quotes
“The EUR/USD rate fell toward the end of last week and is within a big figure of the post-QE announcement low of 1.1098. We suspect that a breach of this low this week is more likely to come from developments on the US side rather than on the euro-zone side.”
“Hence, a strong jobs report and a rise in short-term US yields are probably required for a new low this week - that is certainly feasible although the cold snap in the US throws an element of uncertainty into the key jobs data on Friday.”