26 May 2014
EUR/USD has fully priced in ECB rate cut - JPMorgan
FXStreet (Bali) - EUR/USD has fully priced in a refi rate cut and a negative deposit rate by the ECB at its next meeting, according to Jan Loeys, chief market strategist at JP Morgan.
Key Quotes
"At current levels of 1.36-1.37, EUR/USD has moved as much as it should to reflect a refi rate cut and a negative deposit rate."
"A further decline requires the ECB to suggests that large-scale asset purchases are the next step."
"A move higher in US interest rates could also extend this move."
"We have avoided selling EUR vs. USD due to the UST market’s inability to sell off even as US activity data improve."
Key Quotes
"At current levels of 1.36-1.37, EUR/USD has moved as much as it should to reflect a refi rate cut and a negative deposit rate."
"A further decline requires the ECB to suggests that large-scale asset purchases are the next step."
"A move higher in US interest rates could also extend this move."
"We have avoided selling EUR vs. USD due to the UST market’s inability to sell off even as US activity data improve."