9 Apr 2014
EUR could still push higher - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, sees the potential for further upside in EUR/USD.
Key Quotes
"The phrase “words are cheap” has become quite common in reference to the fading impact of verbal rhetoric from the ECB and EUR/USD price action since the ECB meeting last week underlines exactly that. While there was a clear shift by the ECB to talk more explicitly about the potential for QE, it is clear that nothing short of actual action will have any notable impact."
"June remains our call for additional easing (a deposit rate cut in all likelihood) but in the meantime there is a risk of the euro drifting higher still. The data calendar is light today in Europe and Russia will remain in focus."
"Further signs of unrest in the east of Ukraine will raise the prospect of an additional round of sanctions being implemented with the US publicly blaming Russia for the latest instability in Ukraine. While capital flight from Russia may be helping to support the euro, the wider the sanctions become the greater the risks of a negative impact on the euro."
Key Quotes
"The phrase “words are cheap” has become quite common in reference to the fading impact of verbal rhetoric from the ECB and EUR/USD price action since the ECB meeting last week underlines exactly that. While there was a clear shift by the ECB to talk more explicitly about the potential for QE, it is clear that nothing short of actual action will have any notable impact."
"June remains our call for additional easing (a deposit rate cut in all likelihood) but in the meantime there is a risk of the euro drifting higher still. The data calendar is light today in Europe and Russia will remain in focus."
"Further signs of unrest in the east of Ukraine will raise the prospect of an additional round of sanctions being implemented with the US publicly blaming Russia for the latest instability in Ukraine. While capital flight from Russia may be helping to support the euro, the wider the sanctions become the greater the risks of a negative impact on the euro."