27 Feb 2015
EUR/USD stablized into the NA opening hours - Scotiabank
FXStreet (Guatemala) - Camilla sutton, Chief FX strategist at Scotiabank explained that after yesterday's USD induced EUR weakness, driven by hawkish Fed comments and stronger than expected core CPI, today has EUR stabilized.
Key Quotes:
"Fundamental data included stronger than expected French consumer spending and Italian CPI, with Germany’s regional CPI also firming."
"This highlights an important theme for EUR, with data now improving and beating expectations how much lower will the currency fall. We expect that Fed interest rate hikes juxtaposed against negative interest rates in Europe and negative sentiment will continue to weigh on EUR; however for now the currency is contained within a month‐long range of 1.1098 to 1.1542. We hold a year‐end forecast of 1.05.
Key Quotes:
"Fundamental data included stronger than expected French consumer spending and Italian CPI, with Germany’s regional CPI also firming."
"This highlights an important theme for EUR, with data now improving and beating expectations how much lower will the currency fall. We expect that Fed interest rate hikes juxtaposed against negative interest rates in Europe and negative sentiment will continue to weigh on EUR; however for now the currency is contained within a month‐long range of 1.1098 to 1.1542. We hold a year‐end forecast of 1.05.