23 Aug 2013
Flash: EUR continues to outperform USD - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts are neutral EUR/USD and see spot ranging between 1.3200-1.3500 ahead.
Key Quotes
“The euro is continuing to outperform alongside the US dollar likely supported by
euro-zone residents repatriating funds from overseas.”
“Heightened QE tapering expectations are leading to a significant tightening in global external financing conditions boosting the appeal of the low yielding but more liquid euro and US dollar.”
“The euro-zone’s widening current account surplus also adds to the euro’s relative appeal compared to the US dollar in the current trading environment while the US still runs a sizeable current account deficit although narrowing.”
“Improving cyclical momentum in the euro-zone is helping to support the euro through both raising euro-zone short rates, and to a greater degree through reducing the credit risk of fiscally challenged euro-zone government bonds.”
“In the week ahead, the second release of US GDP report for Q2 may impact Fed QE tapering expectations.”
“The report is expected to reveal a significant upgrade to the initial estimate of Q2 GDP driven primarily by the drag from net trade being revised away.”
Key Quotes
“The euro is continuing to outperform alongside the US dollar likely supported by
euro-zone residents repatriating funds from overseas.”
“Heightened QE tapering expectations are leading to a significant tightening in global external financing conditions boosting the appeal of the low yielding but more liquid euro and US dollar.”
“The euro-zone’s widening current account surplus also adds to the euro’s relative appeal compared to the US dollar in the current trading environment while the US still runs a sizeable current account deficit although narrowing.”
“Improving cyclical momentum in the euro-zone is helping to support the euro through both raising euro-zone short rates, and to a greater degree through reducing the credit risk of fiscally challenged euro-zone government bonds.”
“In the week ahead, the second release of US GDP report for Q2 may impact Fed QE tapering expectations.”
“The report is expected to reveal a significant upgrade to the initial estimate of Q2 GDP driven primarily by the drag from net trade being revised away.”