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20 Aug 2015
EUR/USD turns to a bullish bias – Scotiabank
FXStreet (Edinburgh) - In the opinion of Eric Theoret, Currency Strategist at Scotiabank, the near term outlook for the pair leans towards the bullish side.
Key Quotes
“EUR is strong and building on Wednesday’s 0.9% rally with cumulative gains driven by the combination of relative policy and flows driven by broader turbulence in EM”.
“Both factors are likely to drive further near term strength in EUR as market participants assess the risks arising from China’s liberalization and implications for global growth, with added EUR support from a softening in expectations for the path of Fed policy”.
“Greece is said to have received the first tranche of its most recent bailout, allowing for the repayment of its 3.4bn ECB obligation due today. Political risk remains elevated, as rumors continue to center on the risk of fresh Greek elections in September. The IMF is set to review its assistance this fall”.
“We see limited resistance ahead of 1.1350 and look to support at 1.1080”.
Key Quotes
“EUR is strong and building on Wednesday’s 0.9% rally with cumulative gains driven by the combination of relative policy and flows driven by broader turbulence in EM”.
“Both factors are likely to drive further near term strength in EUR as market participants assess the risks arising from China’s liberalization and implications for global growth, with added EUR support from a softening in expectations for the path of Fed policy”.
“Greece is said to have received the first tranche of its most recent bailout, allowing for the repayment of its 3.4bn ECB obligation due today. Political risk remains elevated, as rumors continue to center on the risk of fresh Greek elections in September. The IMF is set to review its assistance this fall”.
“We see limited resistance ahead of 1.1350 and look to support at 1.1080”.