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6 Mar 2014
Flash: EUR; 2013 high in touching distance - BTMU
FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ said, "The euro is obviously higher at present on the back of the inaction by the ECB.
Key Quotes
"The US data flow has been very unkind to the dollar of late – the Citi Economic Surprise Index table on Bloomberg has the US second from bottom at present – and after yesterday’s horrible ISM employment index there is a risk of another weak NFP reading."
"However, as a Chart of the Week highlights, the reading yesterday is not conclusive. Still, the data flow from the US at best will only start to improve gradually and over the coming week, we have to conclude that there are upside risks for EUR/USD."
"The 2013 high of 1.3893 is in touching distance and stops on a break of that could see a test of the 1.4000 level. The risk the other way would centre around a much stronger payrolls reading tomorrow and a sudden re-escalation of tensions in the Ukraine and Russia."
"But both those scenarios seem less likely at this stage. US Secretary of State John Kerry seemed to suggest some time would be required after stating that he had something “concrete” to bring to President Obama. We expect diplomacy attempt to run for a while yet."
Key Quotes
"The US data flow has been very unkind to the dollar of late – the Citi Economic Surprise Index table on Bloomberg has the US second from bottom at present – and after yesterday’s horrible ISM employment index there is a risk of another weak NFP reading."
"However, as a Chart of the Week highlights, the reading yesterday is not conclusive. Still, the data flow from the US at best will only start to improve gradually and over the coming week, we have to conclude that there are upside risks for EUR/USD."
"The 2013 high of 1.3893 is in touching distance and stops on a break of that could see a test of the 1.4000 level. The risk the other way would centre around a much stronger payrolls reading tomorrow and a sudden re-escalation of tensions in the Ukraine and Russia."
"But both those scenarios seem less likely at this stage. US Secretary of State John Kerry seemed to suggest some time would be required after stating that he had something “concrete” to bring to President Obama. We expect diplomacy attempt to run for a while yet."