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Stop chasing EURUSD higher, ECB speakers in limelight today - BNP

FXStreet (Delhi) – Research Team at BNP Paribas, note that the EURUSD has pushed through September-May highs of 1.1460-1465 and our technical strategists now see the pair potentially extending to 1.1530-57.

Key Quotes

“The trade-weighted EUR is now nearly 1% higher since the September ECB meeting, which is likely to add to policymakers’ concerns over the tightening in financial conditions.”

“While markets could be less sensitive about further hints of easing, we will be watching comments from ECB Vice President Constancio at 9:15 GMT as well as Austria central bank head Nowotny at 9:00 GMT for any additional hints that the Governing Council may start a discussion of possible QE extension as early as the October 22 meeting.”

“We would thus caution against chasing EURUSD higher at this point as our STEER fair value model suggests the pair is somewhat expensive even relative to the very depressed level of US rates.”

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