22 Aug 2013
Flash: EUR/USD lowers on FOMC tapering hopes - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that EUR/USD has traded slightly lower overnight on the FOMC minutes, which increased expectations that the Fed will start tapering in September.
Key Quotes
“However, as we highlighted in our latest FX Forecast Update, the broad USD support and hence a significant trend lower in EUR/USD requires support from relative rates stemming from a steeper US money market curve, which remains a 2014 theme.”
“Hence, EUR/USD is likely to remain rangebound in the coming months. That said, we could see some support to EUR/USD today, as European PMIs are expected to improve and indicate that the euro area has stabilised.”
Key Quotes
“However, as we highlighted in our latest FX Forecast Update, the broad USD support and hence a significant trend lower in EUR/USD requires support from relative rates stemming from a steeper US money market curve, which remains a 2014 theme.”
“Hence, EUR/USD is likely to remain rangebound in the coming months. That said, we could see some support to EUR/USD today, as European PMIs are expected to improve and indicate that the euro area has stabilised.”