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23 Feb 2015
EUR downside expected to resume – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Flemming Nielsen expects the single currency to resume its descent in the near/medium term.
Key Quotes
“The EUR gained on Friday following the Greek debt agreement and EUR/USD bounced more than one figure from an intraday low of 1.1279 to currently around 1.1375”.
“According to our estimation of the Greek risk premium in EUR/USD the bounce seems ‘fair’”.
“With a temporary deal on Greece in place we expect relative monetary policy to be in the driver’s seat for the cross”.
“The first Fed hike is moving rapidly closer (we expect the first hike in June) and as the ECB launches its QE programme in March we look for further downside to materialise in the coming 6M”.
Key Quotes
“The EUR gained on Friday following the Greek debt agreement and EUR/USD bounced more than one figure from an intraday low of 1.1279 to currently around 1.1375”.
“According to our estimation of the Greek risk premium in EUR/USD the bounce seems ‘fair’”.
“With a temporary deal on Greece in place we expect relative monetary policy to be in the driver’s seat for the cross”.
“The first Fed hike is moving rapidly closer (we expect the first hike in June) and as the ECB launches its QE programme in March we look for further downside to materialise in the coming 6M”.