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14 May 2014
EUR/USD eased further after BuBa's comments - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, noted the EUR's decline intensified after appreciations by the Bundesbank.
Key Quotes
"Comments After a slow start the market, began to wake up with a mixed German ZEW picture yesterday morning, with ‘expectations’ coming in weaker and ‘current conditions’ firmer. EURUSD saw mild selling down to the 1.3740 support level, but the catalyst came for a break lower shortly afterwards when source comments were released from the Bundesbank as follows: The Bundesbank would a) support extending unlimited bank loans well into 2016 if needed, b) be willing to cut interest rates if needed, including a Negative Deposit Rate c) be open to significant ECB stimulus in June if 2016 inflation forecasts were lowered".
"A dovish set of comments from the usually hawkish German Central Bank saw EURUSD continue to drag many USD crosses lower from last week’s highs."
Key Quotes
"Comments After a slow start the market, began to wake up with a mixed German ZEW picture yesterday morning, with ‘expectations’ coming in weaker and ‘current conditions’ firmer. EURUSD saw mild selling down to the 1.3740 support level, but the catalyst came for a break lower shortly afterwards when source comments were released from the Bundesbank as follows: The Bundesbank would a) support extending unlimited bank loans well into 2016 if needed, b) be willing to cut interest rates if needed, including a Negative Deposit Rate c) be open to significant ECB stimulus in June if 2016 inflation forecasts were lowered".
"A dovish set of comments from the usually hawkish German Central Bank saw EURUSD continue to drag many USD crosses lower from last week’s highs."