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29 Dec 2014
EUR/USD remains on track to retest 1.2047 level – TDS
FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, believe EUR/USD remains on track to retest the mid-2012 low of 1.2047 in early 2015, noting the policy divergence between Eurozone and US to keep EUR weak.
Key Quotes
“The resumption of trading after the weekend has been orderly for the most part, with the majors all trading in relatively narrow ranges against the USD.“
“EURUSD is just a few points higher from Friday’s close after giving back a 30-point gain it had seen ahead of the Greek Parliamentary vote that failed to appoint PM Samaras’ Presidential candidate. The prospect of snap elections in Greece, although a harbinger for increased volatility for the country in particular but also potentially for other peripherals, appears less of a threat for the EUR than during the 2012 crisis, as the risk for contagion have diminished.“
“The outlook for EUR weakness, however, continues to be predicated upon economic growth and policy divergence between the Eurozone and the US.“
“Along these lines, we believe EUR USD remains on track for a retest of its mid-2012 low of 1.2047 early in 2015. Any rally, even if modest, should be seen as an opportunity to short EURUSD.”
Key Quotes
“The resumption of trading after the weekend has been orderly for the most part, with the majors all trading in relatively narrow ranges against the USD.“
“EURUSD is just a few points higher from Friday’s close after giving back a 30-point gain it had seen ahead of the Greek Parliamentary vote that failed to appoint PM Samaras’ Presidential candidate. The prospect of snap elections in Greece, although a harbinger for increased volatility for the country in particular but also potentially for other peripherals, appears less of a threat for the EUR than during the 2012 crisis, as the risk for contagion have diminished.“
“The outlook for EUR weakness, however, continues to be predicated upon economic growth and policy divergence between the Eurozone and the US.“
“Along these lines, we believe EUR USD remains on track for a retest of its mid-2012 low of 1.2047 early in 2015. Any rally, even if modest, should be seen as an opportunity to short EURUSD.”