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28 Feb 2014
Flash: What lies ahead of the EUR/USD? – BTMU and Commerzbank
FXStreet (Edinburgh) - The EUR/USD is looking to consolidate the intraday advance above the 1.6700 handle on Friday, ahead of the key preliminary inflation figures in the euro area for the month of February.
Against the backdrop of today’s advanced EMU’s CPI figures, Derek Halpenny, European Head of Global Markets Research at BTMU, observed “We maintain that would be a mistake and believe downside inflation risks are much greater but the stream of better economic data from Germany and the strong performance of European equity markets raises the prospect of inaction next week – the EUR/USD rate is likely to grind higher for now”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “rebound from 1.3643 seen yesterday is viewed as corrective, maintain a negative bias. We look for this to sell off following its recent failure just ahead of the 1.3805/78.6% retracement”.
Against the backdrop of today’s advanced EMU’s CPI figures, Derek Halpenny, European Head of Global Markets Research at BTMU, observed “We maintain that would be a mistake and believe downside inflation risks are much greater but the stream of better economic data from Germany and the strong performance of European equity markets raises the prospect of inaction next week – the EUR/USD rate is likely to grind higher for now”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “rebound from 1.3643 seen yesterday is viewed as corrective, maintain a negative bias. We look for this to sell off following its recent failure just ahead of the 1.3805/78.6% retracement”.