8 May 2014
EUR/USD closer to 1.4000 – Danske Bank
FXStreet (Edinburgh) - Anders Fischer, Analyst at Danske Bank, sees increasing chances of the EUR/USD to test the 1.4000 psychological handle.
Key Quotes
“Despite a relatively soft tone from Fed President Janet Yellen, EUR/USD traded slightly lower overnight”.
“However, the cross remains less than a cent within the 1.40 level and the euro might see further support as we do not expect the ECB to ease its monetary policy today”.
“Indeed, Draghi is likely to strike a dovish tone at the press conference but we doubt that ‘just talk’ will have a longer lasting effect on the euro and that it will change the direction for EUR/USD”.
“That said, the EONIA O/N fixing is now back above the refinancing rate again after yesterday’s liquidity operations. Thus, momentum in EUR/USD is likely to fade as support to the euro from relative rates might ease in the short term”.
“All in all, however, we think that a test of the 1.40 level in EUR/USD seems likely in the near term, especially if we break the strong resistance level at 1.3967 - the 2014 high”.
Key Quotes
“Despite a relatively soft tone from Fed President Janet Yellen, EUR/USD traded slightly lower overnight”.
“However, the cross remains less than a cent within the 1.40 level and the euro might see further support as we do not expect the ECB to ease its monetary policy today”.
“Indeed, Draghi is likely to strike a dovish tone at the press conference but we doubt that ‘just talk’ will have a longer lasting effect on the euro and that it will change the direction for EUR/USD”.
“That said, the EONIA O/N fixing is now back above the refinancing rate again after yesterday’s liquidity operations. Thus, momentum in EUR/USD is likely to fade as support to the euro from relative rates might ease in the short term”.
“All in all, however, we think that a test of the 1.40 level in EUR/USD seems likely in the near term, especially if we break the strong resistance level at 1.3967 - the 2014 high”.