6 Dec 2013
Flash: Downward EUR/USD pressure gradually building - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi Strategists note that the euro continues to remain resilient against the dollar but downward pressure is gradually building.
Key Quotes
“The ECB’s decision to maintain its current policy stance at today’s meeting will support EUR/USD stability in the week ahead.”
“The updated ECB staff economic projections have left the door open to further easing next year if required with the mid-point projections for CPI in 2014 and 2015 at 1.1% and 1.3% respectively, remaining well below the ECB’s medium-term target.”
“However with risks to inflation still seen as “broadly balanced”, inflation will likely need to disappoint to trigger further easing.”
“The US dollar is deriving modest support from building evidence that the US economy continues to strengthen following the government shutdown and debt ceiling uncertainty.”
“The probability of another government shutdown early next year is also easing. With labour market conditions likely to have strengthened further in November, investor expectations that the Fed may begin to taper QE in December or January are rising.”
Key Quotes
“The ECB’s decision to maintain its current policy stance at today’s meeting will support EUR/USD stability in the week ahead.”
“The updated ECB staff economic projections have left the door open to further easing next year if required with the mid-point projections for CPI in 2014 and 2015 at 1.1% and 1.3% respectively, remaining well below the ECB’s medium-term target.”
“However with risks to inflation still seen as “broadly balanced”, inflation will likely need to disappoint to trigger further easing.”
“The US dollar is deriving modest support from building evidence that the US economy continues to strengthen following the government shutdown and debt ceiling uncertainty.”
“The probability of another government shutdown early next year is also easing. With labour market conditions likely to have strengthened further in November, investor expectations that the Fed may begin to taper QE in December or January are rising.”