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5 Jul 2013
Flash: Bearish bias for the EUR/USD - BTMU
FXstreet.com (Barcelona) - The EUR/USD has closed the NY session depressed near 1.29 - current ticking t 1.2912 - on the back of Draghi's forward guidance on interest rates, says the FX Team at Bank of Tokyo Mitsubishi UFG.
According to the Team, even if the NFP data comes downbeat, since Drahi was certainly dovish and the bias is clearly to cut rates again, "that will help limit euro buying on Friday." On the other hand, the Bank expects that an in line payrolls report (140k) or above "would probably be enough to see increased euro selling as we go into next week" BTMU Team said.
In conclusion, BMTU, after Thursday's events, is led to believe that "assuming a reasonably decent payrolls report (we doubt it will be strong as risk are to the downside), we have a bearish EUR/USD bias for the week ahead."
According to the Team, even if the NFP data comes downbeat, since Drahi was certainly dovish and the bias is clearly to cut rates again, "that will help limit euro buying on Friday." On the other hand, the Bank expects that an in line payrolls report (140k) or above "would probably be enough to see increased euro selling as we go into next week" BTMU Team said.
In conclusion, BMTU, after Thursday's events, is led to believe that "assuming a reasonably decent payrolls report (we doubt it will be strong as risk are to the downside), we have a bearish EUR/USD bias for the week ahead."