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20 Feb 2014
Flash: PMIs could be pivotal for EUR/USD direction - Danske Bank
FXStreet (Barcelona) - FXStreet (Barcelona) - Lars Christensen, Chief Analyst at Danske Bank notes that the January FOMC minutes released last night did not reveal any indications that the Fed is about to deviate from its current tapering path.
Key Quotes
“However, data out of the US have been surprisingly weak recently and while we still expect the Fed to continue to taper its bond purchases and still look for a lower EUR/USD, we stress that the risks to our main scenario have increased significantly.”
“We will monitor the coming week’s speeches by FOMC members to see whether some of them have changed their view on the economic outlook. This will be essential for the near-term direction in EUR/USD. Today’s series of manufacturing PMIs could also prove directional for the cross.”
Key Quotes
“However, data out of the US have been surprisingly weak recently and while we still expect the Fed to continue to taper its bond purchases and still look for a lower EUR/USD, we stress that the risks to our main scenario have increased significantly.”
“We will monitor the coming week’s speeches by FOMC members to see whether some of them have changed their view on the economic outlook. This will be essential for the near-term direction in EUR/USD. Today’s series of manufacturing PMIs could also prove directional for the cross.”