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9 Apr 2015
EUR/USD gains expected near-term – Westpac
FXStreet (Edinburgh) - In the view of Strategist Sean Callow at Westpac, the pair could squeeze higher in the near term.
Key Quotes
“A softer USD tone and very lopsided positioning remain the key reasons to expect modest EUR/USD gains near term”.
“Multi-month, the stark divergence between the ECB and Fed outlooks will continue to attract EUR sellers”.
“This should be reinforced by ECB president Draghi at next Thursday’s press conference”.
“There has been a little chatter about QE being reduced ahead of the Sep 2016 date currently projected by the ECB”.
“Should the media ask him about this next week, rest assured he will brush aside such talk”.
“Inflation is still a long way below target and the public asset purchase program has only completed 3 weeks. In this time the ECB bought a tidy EUR52.5bn with its ‘printed’ money”.
Key Quotes
“A softer USD tone and very lopsided positioning remain the key reasons to expect modest EUR/USD gains near term”.
“Multi-month, the stark divergence between the ECB and Fed outlooks will continue to attract EUR sellers”.
“This should be reinforced by ECB president Draghi at next Thursday’s press conference”.
“There has been a little chatter about QE being reduced ahead of the Sep 2016 date currently projected by the ECB”.
“Should the media ask him about this next week, rest assured he will brush aside such talk”.
“Inflation is still a long way below target and the public asset purchase program has only completed 3 weeks. In this time the ECB bought a tidy EUR52.5bn with its ‘printed’ money”.