Flash: FOMC and ECB comments weighed on EUR/USD overnight - Danske Bank

FXstreet.com (Barcelona) - Danske Bank strategists note that the more hawkish minutes from FOMC in addition to ECB comments yesterday that negative deposit rates are considered have both weighed on EUR/USD overnight.

Key Quotes

“This divergence in monetary policy outlook between the ECB (soft) and Fed doing tapering (hawkish) is exactly the reason why we believe EUR/USD will drop to 1.26 during the course of 2014.”

“ Today the FX markets will keep an eye on the European PMIs to judge the strength of the incipient recovery in the European economy.”