19 Jun 2014
Sellers clustering around 1.3650-1.3700 – Westpac
FXStreet (Edinburgh) - The research team at Westpac sees the area around 1.3650-1.3700 as a very strong resistance.
Key Quotes
“EUR downside momentum has come to a screeching halt but suspect 1.3650-1.3700 will be likely stacked with medium term offers”.
“Potentially firmer EZ June prelim PMIs next week may yet nudge the currency into this zone but the fundamental backdrop remains unappetizing for the single currency”.
“EONIA may yet print negative in coming days and weeks and the ECB’s balance sheet is set to expand by at least EUR500bn in the next six months (EUR100bn+ from ending SMP sterilisation and EUR400bn from the two TLTROs scheduled later this year) vs. a “mere” $100bn from the Fed”.
Key Quotes
“EUR downside momentum has come to a screeching halt but suspect 1.3650-1.3700 will be likely stacked with medium term offers”.
“Potentially firmer EZ June prelim PMIs next week may yet nudge the currency into this zone but the fundamental backdrop remains unappetizing for the single currency”.
“EONIA may yet print negative in coming days and weeks and the ECB’s balance sheet is set to expand by at least EUR500bn in the next six months (EUR100bn+ from ending SMP sterilisation and EUR400bn from the two TLTROs scheduled later this year) vs. a “mere” $100bn from the Fed”.