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4 Feb 2015
EUR weakness to persist – Rabobank
FXStreet (Edinburgh) - Senior Currency Strategist at Rabobank Jane Foley expects the pair to grind lower during the present year.
Key Quotes
“By whipping the markets into a frenzy of anticipation ahead of last month’s announcement of QE, ECB President Draghi squeezed a huge amount of market impact from the policy well before the details had even been presented”.
“That said, now that the ECB has played its trump card, attention of the currency markets will move back to other central banks”.
“To date the Fed has not signaled that it is unduly concerned about USD strength”.
“However, since the end of last year, money market rates suggest that investors have become less confident about the prospects of a midyear FOMC rate hike and we do not expect a move until late 2015”.
“While strong US fundamentals should continue to drive EUR/USD lower, the USD could experience some dips”.
Key Quotes
“By whipping the markets into a frenzy of anticipation ahead of last month’s announcement of QE, ECB President Draghi squeezed a huge amount of market impact from the policy well before the details had even been presented”.
“That said, now that the ECB has played its trump card, attention of the currency markets will move back to other central banks”.
“To date the Fed has not signaled that it is unduly concerned about USD strength”.
“However, since the end of last year, money market rates suggest that investors have become less confident about the prospects of a midyear FOMC rate hike and we do not expect a move until late 2015”.
“While strong US fundamentals should continue to drive EUR/USD lower, the USD could experience some dips”.