29 Aug 2013
Flash: EUR/USD skewed to downside on Syrian threat - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that in the near term risks to EUR/USD look skewed to the downside given the heightened geopolitical risks as a military strike on Syria could be imminent.
Key Quotes
“However, other factors currently pull in the other direction in EUR/USD as (i) EM central banks have been selling USD reserves to stem the currency depreciation and (ii) the latest set-back in US economic data has fuelled speculations of a more hesitant Fed.”
“In respect of the latter, we might see an upward revision in US Q2 GDP today and initial jobless claims is also expected to indicate a continued steady improvement in employment, which at the end of the day still points towards a start to tapering in September.”
Key Quotes
“However, other factors currently pull in the other direction in EUR/USD as (i) EM central banks have been selling USD reserves to stem the currency depreciation and (ii) the latest set-back in US economic data has fuelled speculations of a more hesitant Fed.”
“In respect of the latter, we might see an upward revision in US Q2 GDP today and initial jobless claims is also expected to indicate a continued steady improvement in employment, which at the end of the day still points towards a start to tapering in September.”