1 Dec 2014
EUR is trading at mid-point of month-long 1.2358 to 1.2600 range – Scotibank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, sees EUR waiting for a catalyst as it still trades within its month-long range between 1.2358 and 1.2600.
Key Quotes
“EUR continues to trade comfortably within its month-long 1.2358 to 1.2600, 242-point range; entering December at the average level it traded at during November and suggesting the currency is waiting for a catalyst.”
“The lower and upper bounds of the range are providing support and resistance; and a break of these levels will provide clues as to near-term direction.”
“Eurozone manufacturing PMI feel below the flash estimate, now only clinging to expansion at 50.1; growth in Spain, Ireland and Netherlands wasn’t enough to offset contractions in three of the largest economies Germany (49.5), France (48.4) and Italy (49).”
“The PMIs confirm that the European manufacturing sector is struggling and that the core European countries are facing a deceleration in what was already a modest growth trend.”
“From a central bank perspective this is likely to concern the ECB and be factored into its policy decision this week; from a currency perspective it is negative and inline with our expectation that EUR trends lower over time.”
Key Quotes
“EUR continues to trade comfortably within its month-long 1.2358 to 1.2600, 242-point range; entering December at the average level it traded at during November and suggesting the currency is waiting for a catalyst.”
“The lower and upper bounds of the range are providing support and resistance; and a break of these levels will provide clues as to near-term direction.”
“Eurozone manufacturing PMI feel below the flash estimate, now only clinging to expansion at 50.1; growth in Spain, Ireland and Netherlands wasn’t enough to offset contractions in three of the largest economies Germany (49.5), France (48.4) and Italy (49).”
“The PMIs confirm that the European manufacturing sector is struggling and that the core European countries are facing a deceleration in what was already a modest growth trend.”
“From a central bank perspective this is likely to concern the ECB and be factored into its policy decision this week; from a currency perspective it is negative and inline with our expectation that EUR trends lower over time.”