Back
4 Jun 2014
What’s the sentiment around the EUR/USD today? – Commerzbank and ANZ
FXStreet (Edinburgh) - The cautious tone prevails around the EUR/USD on Wednesday, as we are getting closer to the ECB monetary policy meeting due tomorrow.
In light of the mounting speculations regarding the potential easing measures by the European Central Bank, Analyst Brian Martin at ANZ assessed, “measures that boost the provision of credit to the SME sector and raise expectations for GDP growth and employment creation could be received favourably by investors. If that is the case, against the backdrop of materially improved economic fundamentals, the euro could rally as such measures would help to assuage the disinflationary pressures coming from an appreciating currency…. we recommend buying EUR/USD”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “this volatile and tight range near term is indicative of an upside corrective phase. However so far the rallies have been tepid and the Elliot wave count on the daily chart is suggesting that these will terminate circa 1.3680 for another leg down”.
In light of the mounting speculations regarding the potential easing measures by the European Central Bank, Analyst Brian Martin at ANZ assessed, “measures that boost the provision of credit to the SME sector and raise expectations for GDP growth and employment creation could be received favourably by investors. If that is the case, against the backdrop of materially improved economic fundamentals, the euro could rally as such measures would help to assuage the disinflationary pressures coming from an appreciating currency…. we recommend buying EUR/USD”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “this volatile and tight range near term is indicative of an upside corrective phase. However so far the rallies have been tepid and the Elliot wave count on the daily chart is suggesting that these will terminate circa 1.3680 for another leg down”.