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10 Mar 2014
Flash: EUR/USD remains supported - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ. remarked the resiliency around the EUR/USD.
Key Quotes
"The euro continues to remain stronger following last week’s ECB policy meeting at which it clearly signalled that the hurdle for further to monetary easing in the near-term has been raised. A stronger euro for longer is the likely outcome from the ECB’s reluctance to act pre-emptively to guard against downside risks to their inflation target especially while the Fed is still expanding its own balance sheet although at a slower pace."
"On a relative basis ECB monetary policy is perceived as tight supporting the euro which appears somewhat inconsistent with low inflation and still subdued economic growth. An even stronger euro will also act to dampen the outlook for inflation and growth in the years ahead although is not yet strong enough to trigger ECB easing."
Key Quotes
"The euro continues to remain stronger following last week’s ECB policy meeting at which it clearly signalled that the hurdle for further to monetary easing in the near-term has been raised. A stronger euro for longer is the likely outcome from the ECB’s reluctance to act pre-emptively to guard against downside risks to their inflation target especially while the Fed is still expanding its own balance sheet although at a slower pace."
"On a relative basis ECB monetary policy is perceived as tight supporting the euro which appears somewhat inconsistent with low inflation and still subdued economic growth. An even stronger euro will also act to dampen the outlook for inflation and growth in the years ahead although is not yet strong enough to trigger ECB easing."