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3 Jun 2014
EUR could still squeeze higher - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, believes there is the chance for the EUR to attempt a bull run.
Key Quotes
"Yesterday’s German inflation data came in softer than expected ahead of today’s full Eurozone release. Noticeably, the euro didn't weaken after the numbers were released signalling that policy action is priced in and the largest risk would be for the ECB to not act sufficiently or at all which would flush out short positions."
"This also means the euro could see a squeeze higher pre-ECB on Thursday, but for now we will focus on today's Eurozone inflation and unemployment data. A very poor reading may see investors increase expectations of how aggressively the ECB will ease policy whereas better data would see a sharp kick back higher in the euro."
Key Quotes
"Yesterday’s German inflation data came in softer than expected ahead of today’s full Eurozone release. Noticeably, the euro didn't weaken after the numbers were released signalling that policy action is priced in and the largest risk would be for the ECB to not act sufficiently or at all which would flush out short positions."
"This also means the euro could see a squeeze higher pre-ECB on Thursday, but for now we will focus on today's Eurozone inflation and unemployment data. A very poor reading may see investors increase expectations of how aggressively the ECB will ease policy whereas better data would see a sharp kick back higher in the euro."