View: Persist with selling EUR/USD rallies, current move looks stretched, timing the risk
We’ve seen a solid bounce in EUR/USD after a brief penetration of the 1.3000 level this morning, maintaining immediate bullish momentum. While there are doubts surrounding the execution of the ECB’s OMT plan as Spain looks to avoid a formal bailout and the oversight that would accompany this, which is a prerequisite for any central bank support, the onset of QE3 followed by BoJ easing has refocused attention on the influence of central banks on currencies. This is naturally bad for the dollar with the Fed clearly having the most robust/effective track record for keeping the Greenback weak in contrast to Europe where a strong currency is still seen as a sign of confidence in the project rather than a helpful adjustment mechanism. The less said about the Bank of Japan’s ability to guide the JPY weaker the better.
Full report below…
Access Our Research
The public website offers just a sample of our analysis, full access and track record is available to subscribers. Please click on the link at the top of the homepage for trial access
Spot FX QuotesThe Forex Quotes are Powered by Forexpros - The Leading Financial Portal.
TagsAUD Bank of England Ben Bernanke BoE Bono Brent Crude Bund CHF China DAX DXY ECB EFSF ESM EUR/GBP EUR/USD Euro European Central Bank European sovereign debt crisis of 2010–present Eurozone Federal Reserve FOMC France GBP GBP/USD Germany Gilts Gold Greece Italy Japan JPY Mario Draghi Nikkei 225 Portugal Quantitative easing S&P500 Spain Treasuries UK United States USD/JPY UST WTI Yield curve
Stock Index Quotes
Live World Indices are Powered by Forexpros - The Leading Financial Portal.
Commodity Futures Quotes
The Commodity Prices Powered by Forexpros - The Leading Financial Portal.