17 Jun 2015
EUR/USD forecast: FOMC stealing the show – Danske Bank and OCBC Bank
FXStreet (Edinburgh) - EUR/USD is flat lining around the mid-1.1200s on Wednesday, as market participants keep a cautious tone in light of the key FOMC meeting due later.
In the opinion of Arne Rasmussen, Chief Analyst at Danske Bank, “Coupled with positioning lighter on USD longs relative to the record highs of Q1 – not least against the single currency – there should now be room for another leg lower in EUR/USD. That is, Yellen will in our view merely re-ignite USD potential rather than be the outright cause of it tonight. We forecast EUR/USD at 1.04 in 3M”.
In addition, FX Strategist Emmanuel Ng at OCBC Bank, remarked, “Our view remains unchanged with risks skewed towards the downside, where the 55-day MA (1.1044) may provide initial support. Resistance is expected into 1.1300 before 1.1360”.
In the opinion of Arne Rasmussen, Chief Analyst at Danske Bank, “Coupled with positioning lighter on USD longs relative to the record highs of Q1 – not least against the single currency – there should now be room for another leg lower in EUR/USD. That is, Yellen will in our view merely re-ignite USD potential rather than be the outright cause of it tonight. We forecast EUR/USD at 1.04 in 3M”.
In addition, FX Strategist Emmanuel Ng at OCBC Bank, remarked, “Our view remains unchanged with risks skewed towards the downside, where the 55-day MA (1.1044) may provide initial support. Resistance is expected into 1.1300 before 1.1360”.