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10 Feb 2015
EUR soft as greek concerns loom - Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that EUR is soft, ignoring improving fundamental data as Greek risk looms.
Key Quotes
“EUR has lost 0.4% into the open, trading in the lower part of its multi‐week 1.1224 to 1.1534 range.”
“The currency has ignored improving fundamentals, with today’s release of stronger than expected industrial and manufacturing production from France and yesterday’s strong German export data; in favour of the building uncertainty over the path for Greece.”
“Accordingly, the near‐term fate of EUR is closely tied to the negotiations that are only beginning.”
“We expect EUR to trend lower in the near and medium term; holding a year‐end forecast of 1.05.”
“EURUSD short‐term technicals: mixed—as EUR has stabilized in a multi‐week range (1.1224 to 1.1534), technicals have become less powerful and signals are now pointing in opposing directions suggesting there is better risk reward elsewhere. A close below the lower bound of the range would open up a test down to the recent low of 1.1098; while a close above 1.1534 would open up a more sustained rally.”
Key Quotes
“EUR has lost 0.4% into the open, trading in the lower part of its multi‐week 1.1224 to 1.1534 range.”
“The currency has ignored improving fundamentals, with today’s release of stronger than expected industrial and manufacturing production from France and yesterday’s strong German export data; in favour of the building uncertainty over the path for Greece.”
“Accordingly, the near‐term fate of EUR is closely tied to the negotiations that are only beginning.”
“We expect EUR to trend lower in the near and medium term; holding a year‐end forecast of 1.05.”
“EURUSD short‐term technicals: mixed—as EUR has stabilized in a multi‐week range (1.1224 to 1.1534), technicals have become less powerful and signals are now pointing in opposing directions suggesting there is better risk reward elsewhere. A close below the lower bound of the range would open up a test down to the recent low of 1.1098; while a close above 1.1534 would open up a more sustained rally.”