18 May 2015
Cautious tone prevails on EUR/USD – ANZ
FXStreet (Edinburgh) - Strategist at ANZ Brian Martin suggested further gains in the pair appear to be limited.
Key Quotes
“Having quickly trumpeted the success of the QE programme, the euro’s recovery would seem to have gone far enough for now”.
“Although having recovered from its January low (-0.6% y/y), HICP inflation is zero and well below the ECB’s target of close to but below 2%”.
“The growth outlook in China is very precarious, the US economy is slow to re-accelerate and the ECB’s forecast that growth will rise 1.5% this year and that inflation will recover towards 1.5% next year are predicated on an EUR/USD exchange rate around current levels (1.13/1.14)”.
“In the short term, the EUR may have overshot to the downside in March, but there are many reasons to be cautious going forward”.
Key Quotes
“Having quickly trumpeted the success of the QE programme, the euro’s recovery would seem to have gone far enough for now”.
“Although having recovered from its January low (-0.6% y/y), HICP inflation is zero and well below the ECB’s target of close to but below 2%”.
“The growth outlook in China is very precarious, the US economy is slow to re-accelerate and the ECB’s forecast that growth will rise 1.5% this year and that inflation will recover towards 1.5% next year are predicated on an EUR/USD exchange rate around current levels (1.13/1.14)”.
“In the short term, the EUR may have overshot to the downside in March, but there are many reasons to be cautious going forward”.