Forex Flash: EUR/USD running out of steam on the way up – Commerzbank

The minutes of the Fed meeting in January have strengthened the signal pointing to a reduction of quantitative easing measures as early as this year, according to Carolin Hecht, analyst at Commerzbank. "The continued recovery of the US economy, combined with the possibility that the Fed might become significantly less expansionary in the second half of the year, is the strongest plus for the greenback".

According to the analyst, the outlook for the EUR is completely different. "After Mario Draghi had prepared the markets for a more cautious economic outlook for the euro zone, a disappointing PMI increased the pressure resting on the euro", she comments. "EUR-USD has clearly run out of steam on its way up".