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19 Dec 2013
Flash: FOMC taper call to linger on sentiment - Danske Bank
FXstreet.com (Barcelona) - Danske Bank Strategists feel that the FX markets will probably continue to digest yesterday’s FOMC decision.
Key Quotes
“Even though the market reaction overall has been relatively muted, we have seen a general move towards a stronger US dollar and EUR/USD is now back at 1.3660 and USD/JPY is trading above the 104-level.”
“We believe the USD appreciation will continue in 2014. However, the next big move lower in EUR/USD is expected to be triggered by a re- pricing of the US money market curve and not least by the deposit rate cut we expect from the ECB next year. “
Key Quotes
“Even though the market reaction overall has been relatively muted, we have seen a general move towards a stronger US dollar and EUR/USD is now back at 1.3660 and USD/JPY is trading above the 104-level.”
“We believe the USD appreciation will continue in 2014. However, the next big move lower in EUR/USD is expected to be triggered by a re- pricing of the US money market curve and not least by the deposit rate cut we expect from the ECB next year. “