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15 Jan 2015
EUR/USD fall in reaction to QE might be short-lived – Growth Aces
FXStreet (Barcelona) - The Growth Aces Team expects the medium-term EUR/USD outlook to be bullish, and further add that the fall in the pair in anticipation of QE might be short lived.
Key Quotes
“The EUR/USD traders are waiting now for U.S. CPI data tomorrow. Lower-than-expected reading will probably strengthen the EUR/USD and this could be a good opportunity to get short ahead on the EUR/USD.”
“Our baseline scenario assumed that a fall of the EUR/USD in reaction to the QE programme will be short-lived and profit-taking could lift the rate soon. We expected the medium-term outlook for the EUR/USD is slightly bullish due to possible delaying rate hikes by the Fed. However, this scenario is under threat after today’s decision of the SNB. There is a risk that a strong crisis in Europe that may be the consequence of the SNB decision may make investors turn into safe-haven assets. This means that the EUR may depreciate further against the USD."
Key Quotes
“The EUR/USD traders are waiting now for U.S. CPI data tomorrow. Lower-than-expected reading will probably strengthen the EUR/USD and this could be a good opportunity to get short ahead on the EUR/USD.”
“Our baseline scenario assumed that a fall of the EUR/USD in reaction to the QE programme will be short-lived and profit-taking could lift the rate soon. We expected the medium-term outlook for the EUR/USD is slightly bullish due to possible delaying rate hikes by the Fed. However, this scenario is under threat after today’s decision of the SNB. There is a risk that a strong crisis in Europe that may be the consequence of the SNB decision may make investors turn into safe-haven assets. This means that the EUR may depreciate further against the USD."