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19 Apr 2013
Forex Flash: EUR/USD looks neutral ahead - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts have taken a look at EUR/USD and are neutral on their outlook and see spot ranging between 1.2800 and 1.3200.
They see that the Euro continues to remain relatively stable against the dollar, fluctuating around the 1.30 level in the near term. Additionally, they believe that the main focus in the week ahead will likely be the release of the latest Eurozone PMI surveys and German IFO survey for April. Bundesbank President Weidmann has clearly signaled that the ECB is actively considering lowering its refi rate dependent upon incoming economic data from the euro-zone. As such, they comment that should the euro-zone PMI surveys signal that the disappointing growth outlook is extending into Q2 it will likely reinforce market expectations that the ECB will lower its refi rate at its next policy meeting on the 2nd May weighing upon the euro. They suspect that European policymakers are unlikely to welcome a strengthening euro while the euro-zone growth underperforms and inflation pressures ease. They write, “However further evidence of slowing US growth heading into Q2 will also weigh upon the US dollar.”
They see that the Euro continues to remain relatively stable against the dollar, fluctuating around the 1.30 level in the near term. Additionally, they believe that the main focus in the week ahead will likely be the release of the latest Eurozone PMI surveys and German IFO survey for April. Bundesbank President Weidmann has clearly signaled that the ECB is actively considering lowering its refi rate dependent upon incoming economic data from the euro-zone. As such, they comment that should the euro-zone PMI surveys signal that the disappointing growth outlook is extending into Q2 it will likely reinforce market expectations that the ECB will lower its refi rate at its next policy meeting on the 2nd May weighing upon the euro. They suspect that European policymakers are unlikely to welcome a strengthening euro while the euro-zone growth underperforms and inflation pressures ease. They write, “However further evidence of slowing US growth heading into Q2 will also weigh upon the US dollar.”