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22 Jan 2015
EUR expected to slip to 1.14 in 1-month – Danske Bank
FXStreet (Edinburgh) - According to analysts at Danske Bank, the ECB quantitative easing programme to be announced today will exert further downside pressure in the pair.
Key Quotes
“If Draghi fails to embark on large-scale QE today we will see EUR pairs rebounding markedly higher in the short term”.
“This point is backed by CFTC IMM data that show how most speculative accounts in the G10 sphere – in particular EUR, AUD and USD - are at historically stretched levels”.
“Having said this, we do expect the ECB to deliver today, which will drive EUR weakness further and send EUR/USD lower towards our 1M and 3M targets of 1.14 and 1.12, respectively”.
Key Quotes
“If Draghi fails to embark on large-scale QE today we will see EUR pairs rebounding markedly higher in the short term”.
“This point is backed by CFTC IMM data that show how most speculative accounts in the G10 sphere – in particular EUR, AUD and USD - are at historically stretched levels”.
“Having said this, we do expect the ECB to deliver today, which will drive EUR weakness further and send EUR/USD lower towards our 1M and 3M targets of 1.14 and 1.12, respectively”.