The euro is likely to outperform Australia, New Zealand, sideways vs. GBP, USD on mixed data



An essential element of the euro forecast: bullish

-Move the euro during the week may be the time to spend a lot of time.

Time and price-point cycles EURUSD hitting from above expectation. ...

-. But the euro has benefited from the recent turmoil in commodity currencies.

Resilience of the euro area, following the 25 bps rate cut surprise of the European Central Bank continued this week, finishing at only 0.44% over the weekend, the Swiss franc, while boasting about + 2.43% return for the operation, the Australian dollar. If one thing was clear, it was that investors were in high demand for euro coins in the last five days. Consider the ten, five major currencies gained against the US dollar, and all were from Europe (compared to USD): CHF + 0.90%; SEK + 0.83%; NOK + 0.82%; GBP + 0.67%; (Eur) + 0.46%.

It is becoming increasingly clear that absent further deterioration, the negativity about the European continent has been priced in, he should be considered a positive sign for the euro by non-euro member currencies, see their value also; He also marketed the participant's outlook on the growth of the entire region.

Profits in Europe this week is even more uncertain when illuminated by the October meeting of the Federal Reserve minutes left open the possibility to taper QE3 December data contingent on "improving". With the meeting having occurred before the October figures were available, NFP, because we saw a major move of data held in December to taper, considering how the title handily beat expectations. If the expectations start to taper QE3 – had evidence this week as the yield curve steepened USA – will be difficult for the euro to continue to push out only modest gains against the dollar.

The euro may have elsewhere, however, as was seen this week. The commodity currencies bleeding land in all areas of late Wednesday through Friday to close (the agent), there is evidence of clear round out the higher yielding currencies into lower yielding currencies but friendly growth – the European bloc.

Recent data signals and European policy during the week were far from reassuring for the bulls. At one end, the euro and French PMI was pretty lukewarm, speculation (briefly) ECB would consider cutting its main rate to negative territory. On the other hand, German improved PMIs the German IFO survey improved, Mario Draghi ECB President refuted the idea of negative deposit rates. There are positives and negatives, but for now, it appears to be positive, it looks like ECB will keep policy unchanged at its meeting in December.

This week, there are only a few important events on the calendar, with the United States to cut off liquidity until Wednesday, with market prices might be reduced in the responses to all incoming data. It should be noted, the information in the German market for November arrived on Thursday, which could see further stabilization in the IFO survey.

But the inflation data lifted the Imperial Germany, the euro. ECB to cut its key rate earlier this month after October's figures show deflation in Germany and post-war crisis in inflation in low lit up. Have these figures show modest improvement even after a dip at the start of the euro 13, 4Q could see its strength to extend from commodity bloc more flexible its opponents in recent weeks, the British pound, the dollar, as the calendar turns in the last month of the year. – CV

To get that analyst reports, sign up for our mailing list.


View the original article here