14 Mar 2016
EUR/USD gains appear capped – BBH
Analysts at BBH have suggested that the pair could struggle to advance further.
Key Quotes
“The euro met the 61.8% retracement of its decline since the February high near $1.1375”.
“For the past year, with the one exception of last August 28, the euro has been capped in the $1.1450-$1.1475 area. A break of that area therefore could be significant”.
“However, with the US two-year premium over Germany widening to multiyear highs, we simply do not believe the incentive structure can fuel a sustained euro advance”.
Key Quotes
“The euro met the 61.8% retracement of its decline since the February high near $1.1375”.
“For the past year, with the one exception of last August 28, the euro has been capped in the $1.1450-$1.1475 area. A break of that area therefore could be significant”.
“However, with the US two-year premium over Germany widening to multiyear highs, we simply do not believe the incentive structure can fuel a sustained euro advance”.