28 Apr 2015
EUR/USD choppy consolidation on the cards – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, sees the narrowing yields differential between USD and EUR as supportive for the single currency, expecting choppy consolidation for EUR/USD in the coming weeks.
Key Quotes
“The better tone of Eurozone data may suggest that bund yields are closer to reaching a bottom but with the ECB buying a massive EUR 60 bln of European public and private assets every month, this is inevitably weigh heavily on yields for some time.”
“That said, this week the USD’s yield differential over the EUR has showed signs of narrowing. This will have helped lend the EUR support vs. the USD. Demand for Eurozone stocks will also have fed the EUR’s better tone.”
“As its stands parity in EUR/USD seems more distance than it did just a month or so ago. While we still expect that the USD will outperform the EUR this year, this assumes that US economic data will improve in the coming months allowing the Fed to start hiking interest rates by the end of the year.”
“Our 12 mth forecast for EUR/USD stands at 1.04.”
“In the coming weeks further choppy consolidative trading could be on the cards. We see strong resistance at the EUR/USD1.11 level.”
Key Quotes
“The better tone of Eurozone data may suggest that bund yields are closer to reaching a bottom but with the ECB buying a massive EUR 60 bln of European public and private assets every month, this is inevitably weigh heavily on yields for some time.”
“That said, this week the USD’s yield differential over the EUR has showed signs of narrowing. This will have helped lend the EUR support vs. the USD. Demand for Eurozone stocks will also have fed the EUR’s better tone.”
“As its stands parity in EUR/USD seems more distance than it did just a month or so ago. While we still expect that the USD will outperform the EUR this year, this assumes that US economic data will improve in the coming months allowing the Fed to start hiking interest rates by the end of the year.”
“Our 12 mth forecast for EUR/USD stands at 1.04.”
“In the coming weeks further choppy consolidative trading could be on the cards. We see strong resistance at the EUR/USD1.11 level.”