21 Mar 2014
EUR/USD settles below 1.3800 - Danske Bank
FXStreet (Barcelona) - Jens Nærvig Pedersen, Analyst at Danske Bank comments that EUR/USD appears to have settled just below the 1.38 level for now.
Key Quotes
“While we cannot rule out that this week’s hawkish Fed messages could prove a turning point for EUR/USD, we do not think a massive sell-off will be seen from here in the near term.”
“First, the Fed will likely in the months ahead try to tone down expectations of when the first rate hike should be expected as Yellen likely made a slip of tongue on this issue at her first press conference; in this respect, the Fed speeches today could be important in setting a direction for USD.”
“Second, we stress that the likely lack of significant action from the ECB despite low inflation outcomes ahead should remain a headwind for EUR/USD to go much lower in the near term (recall that we still see the cross lower in 12M).”
Key Quotes
“While we cannot rule out that this week’s hawkish Fed messages could prove a turning point for EUR/USD, we do not think a massive sell-off will be seen from here in the near term.”
“First, the Fed will likely in the months ahead try to tone down expectations of when the first rate hike should be expected as Yellen likely made a slip of tongue on this issue at her first press conference; in this respect, the Fed speeches today could be important in setting a direction for USD.”
“Second, we stress that the likely lack of significant action from the ECB despite low inflation outcomes ahead should remain a headwind for EUR/USD to go much lower in the near term (recall that we still see the cross lower in 12M).”