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4 Apr 2013
Forex Flash: What lies ahead of EUR/USD? – BTMU, Commerzbank and Danske Bank
FXstreet.com (Barcelona) - The shared currency is trading on the back foot on Thursday, dragged to session lows around 1.2780 after softer-than-expected services PMI prints in the euro area. The ECB will hold its monthly gathering later, although no modifications are expected to its monetary policy.
“We still expect the ECB to cut but today is premature and today could be more about Draghi reassuring the markets that progress is being made”, suggested Derek Halpenny, Analyst at BTMU.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “EUR/USD is consolidating below its 200 day ma and resistance line at 1.2892/1.2912, and while capped here a negative bias is maintained”.
“With net positioning now closing in on stretched territory for the euro, we stress, however, that should the ECB refrain from a cut (our base scenario), euro upside could certainly be in store, as investors would be likely to be ready to cover shorts and/or add longs”, remarks Christin Tuxen, Analyst at Danske Bank.
“We still expect the ECB to cut but today is premature and today could be more about Draghi reassuring the markets that progress is being made”, suggested Derek Halpenny, Analyst at BTMU.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “EUR/USD is consolidating below its 200 day ma and resistance line at 1.2892/1.2912, and while capped here a negative bias is maintained”.
“With net positioning now closing in on stretched territory for the euro, we stress, however, that should the ECB refrain from a cut (our base scenario), euro upside could certainly be in store, as investors would be likely to be ready to cover shorts and/or add longs”, remarks Christin Tuxen, Analyst at Danske Bank.