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3 Mar 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The single currency is consolidating below the 1.3800 against the backdrop of better-than-expected manufacturing PMI prints in the euro area and jitters on the Russia-Ukraine situation.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The rally higher on Friday completely wrong footed us and we will need to break back below the 1.3664 support line to alleviate immediate upside pressure and signal a slide lower to the 1.3532 support line”.
In addition, Analyst Lars Christensen at Danske Bank, commented, “We stress that we now need the perfect storm in the form of both ECB easing – including rate cut(s)to negative territory – and Fed tapering to be completed this year for our 12M forecast of 1.26 to materialise. In all other ECB-Fed outcomes, EUR/USD is likely to be higher than in our baseline scenario”.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The rally higher on Friday completely wrong footed us and we will need to break back below the 1.3664 support line to alleviate immediate upside pressure and signal a slide lower to the 1.3532 support line”.
In addition, Analyst Lars Christensen at Danske Bank, commented, “We stress that we now need the perfect storm in the form of both ECB easing – including rate cut(s)to negative territory – and Fed tapering to be completed this year for our 12M forecast of 1.26 to materialise. In all other ECB-Fed outcomes, EUR/USD is likely to be higher than in our baseline scenario”.