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2 Aug 2013
Flash: EUR/USD bearish into key NFPs - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that EUR/USD looks bearish ahead and looks set to trade between 1.2950 and 1.3350.
Key Quotes
“ECB President Draghi has just completed his press conference following today’s meeting and there was nothing in the meeting to suggest any reappraisal of the monetary policy outlook over the coming week.”
“The “forward guidance” was repeated and importantly Draghi added that current market rates were unwarranted. However, we believe it is a case of markets watching what the ECB does rather than what it says.”
“In that regard the euro is likely to remain well supported for now as the ECB’s balance sheet continues to shrink as excess liquidity is removed.”
“The key event of course for EUR/USD and the dollar generally in the week ahead is of course the NFP report tomorrow. We sense upside risks to the current 185k consensus and a stronger report tomorrow after the strong ISM today leans us toward a bias for a stronger dollar.”
“Data-wise the week ahead is quiet after tomorrow and the only potential for some market volatility might come from Fed speakers with Fed Presidents Bullard, Evans (voters), and Evans, Plosser and Pianalto (all voters in 2014) all speaking.”
Key Quotes
“ECB President Draghi has just completed his press conference following today’s meeting and there was nothing in the meeting to suggest any reappraisal of the monetary policy outlook over the coming week.”
“The “forward guidance” was repeated and importantly Draghi added that current market rates were unwarranted. However, we believe it is a case of markets watching what the ECB does rather than what it says.”
“In that regard the euro is likely to remain well supported for now as the ECB’s balance sheet continues to shrink as excess liquidity is removed.”
“The key event of course for EUR/USD and the dollar generally in the week ahead is of course the NFP report tomorrow. We sense upside risks to the current 185k consensus and a stronger report tomorrow after the strong ISM today leans us toward a bias for a stronger dollar.”
“Data-wise the week ahead is quiet after tomorrow and the only potential for some market volatility might come from Fed speakers with Fed Presidents Bullard, Evans (voters), and Evans, Plosser and Pianalto (all voters in 2014) all speaking.”