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21 Apr 2015
EUR/USD looking to break the range – Scotiabank
FXStreet (Edinburgh) - According to Camilla Sutton, Chief FX Strategist at Scotiabank, EUR/USD will need a strong catalyst to break the prevailing range.
Key Quotes
“European yield spreads between Germany and the periphery have widened (slightly improved today), however well off their March lows, suggesting that contagion risk remains an area to watch”.
“For Greece important hurdles come with this week’s Eurogroup meeting, its ability to pay public servants and upcoming payments (including the May 1st IMF interest payment of €200m followed by the May 12th €800m payment)”.
“Data this week is light across Europe, however PMIs will be important in order to maintain the tone of progress”.
“We see Greece and liquidity risk as a major weight against EUR; but outside of that the bigger broader outlook has become far more balanced, leaving EUR still trading within its broad 1.0458 to 1.1052 range”.
“The currency will need a significant catalyst to break outside of this range”.
Key Quotes
“European yield spreads between Germany and the periphery have widened (slightly improved today), however well off their March lows, suggesting that contagion risk remains an area to watch”.
“For Greece important hurdles come with this week’s Eurogroup meeting, its ability to pay public servants and upcoming payments (including the May 1st IMF interest payment of €200m followed by the May 12th €800m payment)”.
“Data this week is light across Europe, however PMIs will be important in order to maintain the tone of progress”.
“We see Greece and liquidity risk as a major weight against EUR; but outside of that the bigger broader outlook has become far more balanced, leaving EUR still trading within its broad 1.0458 to 1.1052 range”.
“The currency will need a significant catalyst to break outside of this range”.