11 Dec 2013
Flash: EUR/USD to remain elevated? - OCBC Bank
Emmanuel Ng, FX Strategist at OCBC Bank notes that EUR/USD may stay elevated so long as Draghi is not concerned by deflationary pressures.
Key Quotes
“Risk premiums in the EZ continued to compress on Tuesday and the pair may continue to attempt to stay aloft in this environment despite the ECB’s Draghi seeing little potential for a deflationary environment.”
“As noted yesterday, the EUR/USD may find fortitude to test towards the 1.3800 ceiling in the near term. On the downside, a key psychological support is expected on dips to the 1.3700 and then 1.3650 area.”
Key Quotes
“Risk premiums in the EZ continued to compress on Tuesday and the pair may continue to attempt to stay aloft in this environment despite the ECB’s Draghi seeing little potential for a deflationary environment.”
“As noted yesterday, the EUR/USD may find fortitude to test towards the 1.3800 ceiling in the near term. On the downside, a key psychological support is expected on dips to the 1.3700 and then 1.3650 area.”