OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: Reasons why EUR should depreciate over coming months - RBS

FXstreet.com (Barcelona) - RBS FX strategist David Simmonds just laid out in a report sent out to clients a plethora of reasons potentially weighing in the EUR/USD exchange rate over coming months.

According to David: "The Euro area growth prognosis is dire and there is more ECB easing on the way. We expect a refi rate cut by June, alongside the new Staff forecasts. This is likely to be ineffective, of course, as a means of stimulating growth. But the ECB will feel the need to be seen to be doing something.

"Also rates strategy colleagues re-emphasise that 2Y Germany yields look cheap at 0.02%! Not a case of how low can it go, but how negative (the answer we think is deeply negative). So 2Y rate spreads can be a driver of EUR/USD lower over time" he adds.

David also touches on capital controls inside a currency union, saying it is not viable, and that "this potentially creates a deeply dangerous precedent set for the single currency and a key reason why we expect EUR to depreciate over coming months."

Forex: AUD/USD awaits HSBC China PMI above 1.0250, off fresh 1-month lows

AUD/USD is last at 1.0274 bids, slightly above yesterday's Asian session lows, and at around previous weekly close Friday, off fresh 1-month lows printed by early NY trade at 1.0234. The pair has bounced from a critical ascending trend line coming from June 2012 lows around the 0.96 level, after retracing from yesterday's weekly highs at 1.0308.
Read more Previous

Forex: AUD/JPY capped again below 103.10, China data on tap later in session

The AUD/JPY closed the US session 50 pips lower at 101.95. The pair had at one point traded as high as 103.00 but was unable to maintain a firm bid at higher levels and eventually leaked lower much of the afternoon. All eyes will be on data out of China during the upcoming Asia session, as HSBC Manufacturing PMI (51.4 forecast) will be released at 1:45 GMT. Also note that Australia CPI will be released later in the week on April 24th at 1:30GMT.
Read more Next
Start livechat