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#1 17-05-2017 14:17:39

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2121

EUR/USD: 2 reasons why we should see better buy entry points soon

EUR/USD: 2 reasons why we should see better buy entry points in the short term (Danske Bank)

According to Danske Bank, the EUR/USD can still rise on the forex, but it is better to wait for better entry points.

"Euro pairs made strong gains on the forex on Tuesday, with the EUR/USD breaking above 1.11. The strong momentum on the EUR does not seem to be linked to any particular events, but the focus is on the euro area economy that is performing well and the inevitable end of the ECB's easing.

In view of the low positioning (according to IMM data), the EUR pairs could still have room to go higher during the next few days. While our bias remains upward on the EUR/USD, we see at least two reasons why we could have better short-term entry points:

1- While the economic surprise indexes are at the extreme levels in terms of positive EU/negative US surprises, we are still anticipating a reversal of cycles with risks of a slowdown affecting the euro area, and therefore the ECB.

2- In terms of relative monetary policies, we continue to believe that the USD will gain support due to the Fed's communication on a reduction of the current account and a rate hike in July, while the ECB should remain dovish, particularly following the recent acceleration of the euro."

"Anything worth having is worth going for - all the way." - J.R. Ewing



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