22 Jan 2016
Low volume rally can propel EURUSD into 1.11/1.12 trajectory - Westpac
FXStreet (Delhi) – Richard Franulovich, Research Analyst at Westpac, suggests that they are neutral EUR right here though would not be surprised to see a low volume rally into 1.11/1.12 if the FOMC statement next week elevates concerns about global and market developments.
Key Quotes
“Would not get too carried away though - the plunge in energy prices and the higher EUR TWI will punch a hole in the ECB’s infl ation forecasts and could trigger fresh easing in March when the staff ’s forecasts are updated.
GBP probably needs to consolidate its sharp fall for a while. However a toxic brew of Brexit risk and near zero prospects of a BoE hike this year and possibly until well into 2017 should continue to weigh.
CHF’s inability to benefit from recent market turmoil is a potentially telling insight into the poor underlying fundamentals on the currency, notably extreme overvaluation and negative cash rates.”
Key Quotes
“Would not get too carried away though - the plunge in energy prices and the higher EUR TWI will punch a hole in the ECB’s infl ation forecasts and could trigger fresh easing in March when the staff ’s forecasts are updated.
GBP probably needs to consolidate its sharp fall for a while. However a toxic brew of Brexit risk and near zero prospects of a BoE hike this year and possibly until well into 2017 should continue to weigh.
CHF’s inability to benefit from recent market turmoil is a potentially telling insight into the poor underlying fundamentals on the currency, notably extreme overvaluation and negative cash rates.”