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6 Mar 2014
Flash: - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank said, "As expected the ECB made no change to policy, leaving interest rates on hold at 0.25% and making no other changes. Accordingly EUR continues to trade within last Friday’s 1.3694 to 1.3825 range."
Key Quotes
"President Draghi will hold its traditional press conference at 8:30am EST where he is likely to highlight that inflation expectations remain well anchored, he does not see evidence of deflation, the causes of low inflation are food and weak demand, but that some disinflation is good, particularly in the program countries where it is explained by a shift in pricing adjustment. In addition he is likely to suggest that fundamental data is showing early signs of encouragement but they are watching developments in the EM closely, and that the ECB remains willing and ready to act. We expect EUR to perform reasonably well into the end of Q1; but to weaken from there, closing the year at 1.30."
"EUR/USD short‐term technicals: bullish—support and resistance levels can be framed around the open and close of the February 28th session (1.3710 and 1.3825, respectively)."
Key Quotes
"President Draghi will hold its traditional press conference at 8:30am EST where he is likely to highlight that inflation expectations remain well anchored, he does not see evidence of deflation, the causes of low inflation are food and weak demand, but that some disinflation is good, particularly in the program countries where it is explained by a shift in pricing adjustment. In addition he is likely to suggest that fundamental data is showing early signs of encouragement but they are watching developments in the EM closely, and that the ECB remains willing and ready to act. We expect EUR to perform reasonably well into the end of Q1; but to weaken from there, closing the year at 1.30."
"EUR/USD short‐term technicals: bullish—support and resistance levels can be framed around the open and close of the February 28th session (1.3710 and 1.3825, respectively)."