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31 Mar 2014
EUR/USD outlook defined by two pending events – Danske Bank
FXStreet (Barcelona) - Flemming J. Nielsen, Senior Analyst at Danske Bank can see two big events this week which might be pivotal for EUR/USD.
Key Quotes
“First of all, we think it is likely that the ECB might announce some easing measures in connection with its monetary policy meeting on Thursday. However, we acknowledge that it is a very close call.”
“Moreover, the US labour market on Friday might also surprise to the upside as some payback from a exceptionally cold winter could be seen.”
“If we are right, further downside in EUR/USD is likely in the short term and consequently, we will probably have to revise down our 3M target of 1.42 as further ECB easing and a strong US labour market report indeed reduce the chance of a break above 1.40. “
Key Quotes
“First of all, we think it is likely that the ECB might announce some easing measures in connection with its monetary policy meeting on Thursday. However, we acknowledge that it is a very close call.”
“Moreover, the US labour market on Friday might also surprise to the upside as some payback from a exceptionally cold winter could be seen.”
“If we are right, further downside in EUR/USD is likely in the short term and consequently, we will probably have to revise down our 3M target of 1.42 as further ECB easing and a strong US labour market report indeed reduce the chance of a break above 1.40. “