28 Apr 2015
What’s in store for EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) - The single currency remains in the upper 1.0800s ahead of the European open on Tuesday, posting marginal losses vs. the US dollar so far.
Chief Analyst Lars Christensen at Danske Bank suggested “The USD sold off again yesterday against most G10 currencies on the weak US service PMI figures… we argue that we see potential for a shift upwards in the market’s Fed funds rate expectations on the back of positive data releases this week, not least supported by the tone in the FOMC statement on Wednesday. This could also trigger the next leg lower in EUR/USD”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has rallied towards the 55 day ma at 1.0932, which has so far held. Intraday Elliott way counts are relatively neutral suggesting that the 55 day ma and the more important 1.1027/98 band (January low and March/April highs) will hold the topside”.
Chief Analyst Lars Christensen at Danske Bank suggested “The USD sold off again yesterday against most G10 currencies on the weak US service PMI figures… we argue that we see potential for a shift upwards in the market’s Fed funds rate expectations on the back of positive data releases this week, not least supported by the tone in the FOMC statement on Wednesday. This could also trigger the next leg lower in EUR/USD”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “has rallied towards the 55 day ma at 1.0932, which has so far held. Intraday Elliott way counts are relatively neutral suggesting that the 55 day ma and the more important 1.1027/98 band (January low and March/April highs) will hold the topside”.