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Low volume rally can propel EURUSD into 1.11/1.12 trajectory - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    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.”
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