EUR/USD likely to move higher near-term – TDS

FXStreet (Barcelona) - According to Shaun Osborne, Chief FX Strategist at TD Securities, with the broader USD tone being consolidative, EUR/USD might strengthen in the near-term.

Key Quotes

“This week’s data highlight from the US will be the January FOMC minutes which provide a nice curtain-raiser ahead of Chair Yellen’s congressional testimony on the economy and monetary policy next week.”

“The FOMC’s January policy statement noted “international” issues as a consideration for policy makers last month but those sorts of worries could be fine-tuned in the minutes, especially considering recent developments—expectations of a benign outcome to the EU/Greece talks, the “ceasefire” moves in Ukraine and slightly better EZ growth data last week.”

“St Louis Fed President suggested at the start of February that there was no specific issue bothering policy makers last month and the remark was simply the recognition that global market developments are taken into account in Fed thinking”

“The FOMC minutes aside, we still think the broader USD tone here is consolidative; EURUSD remains range bound and still looks a little more likely to move somewhat higher near-term—much as the seasonal patterns suggest it should—even as Greece/EU talks stall and time appears to be running out for a deal.”

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