Back
6 Jun 2014
EUR/USD 3 mths range 1.36-1.38 handles - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that despite the huge degree of uncertainty over what both the ECB and the US labour data could bring in the coming 28 hours of so, it comes against a backdrop of very low market volatility.
Key Quotes:
“This year, news flow has brought both significant economic events but also high profile geopolitical events”.
“EUR/USD, however, has remained mostly range driven. Since the start of this year EUR/USD has drawn a ballpark range of 1.35 to 1.40”.
“This is almost half the size of the range maintain in the same period last year and significantly smaller than that drawn in the first five months of 2012”.
“While we estimate that EUR/USD will push lower over the medium-term, we do not anticipate a rapid adjustment and estimate that it could take 12 mth or so before EUR/USD is trading around the 1.30”.
“For now, we see risk that in the next 3 mths EUR/USD could hold a range between 1.36 and 1.38”.
Key Quotes:
“This year, news flow has brought both significant economic events but also high profile geopolitical events”.
“EUR/USD, however, has remained mostly range driven. Since the start of this year EUR/USD has drawn a ballpark range of 1.35 to 1.40”.
“This is almost half the size of the range maintain in the same period last year and significantly smaller than that drawn in the first five months of 2012”.
“While we estimate that EUR/USD will push lower over the medium-term, we do not anticipate a rapid adjustment and estimate that it could take 12 mth or so before EUR/USD is trading around the 1.30”.
“For now, we see risk that in the next 3 mths EUR/USD could hold a range between 1.36 and 1.38”.