30 Jan 2015
EUR/USD likely to remain under pressure - BTMU
FXStreet (Bali) - According to the FX Strategy Team at Bank of Tokyo-Mitsubishi UFJ, the Euro/US Dollar is likely to remain under downward pressure.
Key Quotes
"The euro is likely to remain under downward pressure against the US dollar in the near-term. The ECB’s recently announced aggressive asset purchase programme
remains a weight on the euro. The latest negative developments in both Greece and in the Ukraine are also unfavourable for the euro."
"However, the euro may begin to derive some support from tentative signs that economic growth is gradually improving in the euro-zone. The loosening of monetary conditions in the euro-zone including the weaker euro and lower energy prices should help to support economic growth."
"In contrast, the US dollar is continuing to derive support from the loosening of monetary policy overseas while the Fed still appears on course to begin raising rates from the middle of this year."
"The US economy is growing solidly with consumption likely to be boosted by lower energy prices. Consumer confidence has already improved markedly. The main impediment to rate hikes from the Fed is below target inflation. The release of the employment cost index for Q4 and PCE deflator report for December in the week ahead will impact on US dollar direction."
Key Quotes
"The euro is likely to remain under downward pressure against the US dollar in the near-term. The ECB’s recently announced aggressive asset purchase programme
remains a weight on the euro. The latest negative developments in both Greece and in the Ukraine are also unfavourable for the euro."
"However, the euro may begin to derive some support from tentative signs that economic growth is gradually improving in the euro-zone. The loosening of monetary conditions in the euro-zone including the weaker euro and lower energy prices should help to support economic growth."
"In contrast, the US dollar is continuing to derive support from the loosening of monetary policy overseas while the Fed still appears on course to begin raising rates from the middle of this year."
"The US economy is growing solidly with consumption likely to be boosted by lower energy prices. Consumer confidence has already improved markedly. The main impediment to rate hikes from the Fed is below target inflation. The release of the employment cost index for Q4 and PCE deflator report for December in the week ahead will impact on US dollar direction."