20 Aug 2013
Flash:EUR valued below 1.3000 - BMO
FXstreet.com (Barcelona) - Stephen Gallo, European Head of FX Strategy for BMO said their short-term fair value model for EUR/USD still places it below the 1.30 mark.
Key Quotes:
"Our short-term fair value model for EUR/USD still places it below the 1.30 mark, particularly in light of the recent weakness in European bank shares, but we suspect that the will on the part of participants to initiate short-term macro-related bets in the pair is gone entirely in this environment".
"If FX participants know there is very little appetite for moves down in EUR/USD at present, the obvious conclusion must be that the appetite is on the way up".
"In part, this may explain why the modest pullback in the USD versus the developing market space this morning in London was felt in EUR/USD too".
Key Quotes:
"Our short-term fair value model for EUR/USD still places it below the 1.30 mark, particularly in light of the recent weakness in European bank shares, but we suspect that the will on the part of participants to initiate short-term macro-related bets in the pair is gone entirely in this environment".
"If FX participants know there is very little appetite for moves down in EUR/USD at present, the obvious conclusion must be that the appetite is on the way up".
"In part, this may explain why the modest pullback in the USD versus the developing market space this morning in London was felt in EUR/USD too".