8 Jan 2016
EUR/USD looks to NFP for direction – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Jakob Christensen assessed the prospects of the pair ahead of today’s Non-farm Payrolls in the US economy.
Key Quotes
“EUR/USD moved higher yesterday, thus defying the ongoing sell-off in equities and oil”.
“What does this tell us? First, the falling oil price sends equities lower as risk appetite is impaired as the latest oil drop seems largely demand-driven. Second, EUR/USD is currently negatively correlated with both risk appetite and oil”.
“The former suggests that the single currency is increasingly regarded a funding (safe-haven) currency; the latter underlines that the historically close co-movement of oil and EUR/USD is challenged, one reason for this being that the weaker oil price now benefits the eurozone relatively more than the US”.
“Thus, an oil price that is set to stay 'lower for longer' in fact boosts the potential for
Key Quotes
“EUR/USD moved higher yesterday, thus defying the ongoing sell-off in equities and oil”.
“What does this tell us? First, the falling oil price sends equities lower as risk appetite is impaired as the latest oil drop seems largely demand-driven. Second, EUR/USD is currently negatively correlated with both risk appetite and oil”.
“The former suggests that the single currency is increasingly regarded a funding (safe-haven) currency; the latter underlines that the historically close co-movement of oil and EUR/USD is challenged, one reason for this being that the weaker oil price now benefits the eurozone relatively more than the US”.
“Thus, an oil price that is set to stay 'lower for longer' in fact boosts the potential for