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1 Oct 2013
Flash: EUR/USD will struggle to breach 2013 high - BTMU
FXstreet.com (London) - Derek Halpenny, strategist at The Bank of Tokyo-Mitsubishi UFJ said the euro has drifted higher as expected and as long as the markets remains relatively calm over the government shutdown, the euro could drift further higher.
Key Quotes:
"However, even in circumstances of the shutdown dragging the dollar further lower in the near-term, EUR/USD will struggle to breach the 2013 high of 1.3711".
"The political uncertainty in Italy and possible uncertainties brewing in Portugal will curtail buying as will the ECB policy meeting tomorrow".
"We suspect the ECB will be getting increasingly uncomfortable with EUR/USD at these levels and hence expect another dovish press conference that signals to the markets the possibility of some form of action in November or December".
"Once US political uncertainties clear, EUR/USD will head lower".
Key Quotes:
"However, even in circumstances of the shutdown dragging the dollar further lower in the near-term, EUR/USD will struggle to breach the 2013 high of 1.3711".
"The political uncertainty in Italy and possible uncertainties brewing in Portugal will curtail buying as will the ECB policy meeting tomorrow".
"We suspect the ECB will be getting increasingly uncomfortable with EUR/USD at these levels and hence expect another dovish press conference that signals to the markets the possibility of some form of action in November or December".
"Once US political uncertainties clear, EUR/USD will head lower".