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15 May 2015
EUR/USD rally appears unsustainable – BTMU
FXStreet (Edinburgh) - Further upside momentum in EUR/USD could be running out of steam, according to Currency Analyst at BTMU Lee Hardman.
Key Quotes
“The initial negative impact of the ECB’s QE announcement in weakening the euro is being reversed as real yields in the eurozone have rebounded modestly”.
“At the current juncture we still believe that it is premature to expect the euro to stage a sustainable rebound. The scope for further upside is likely to become more limited beyond current levels”.
“As emphasized yesterday by President Draghi the ECB is likely to continue implementing aggressive monetary easing at least until the end September of next year which should remain a weight on the euro dampening the scope for further upside”.
“It also remains more likely in our view that the ECB could extend QE beyond the end of September of next year rather than cutting short QE by ending purchases earlier and/or tapering the size of monthly purchases.“
Key Quotes
“The initial negative impact of the ECB’s QE announcement in weakening the euro is being reversed as real yields in the eurozone have rebounded modestly”.
“At the current juncture we still believe that it is premature to expect the euro to stage a sustainable rebound. The scope for further upside is likely to become more limited beyond current levels”.
“As emphasized yesterday by President Draghi the ECB is likely to continue implementing aggressive monetary easing at least until the end September of next year which should remain a weight on the euro dampening the scope for further upside”.
“It also remains more likely in our view that the ECB could extend QE beyond the end of September of next year rather than cutting short QE by ending purchases earlier and/or tapering the size of monthly purchases.“