Forex Flash: EUR/USD looks bearish ahead – BTMU
Forex pairs in this Article »
EUR/USD
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts believe that EURUSD holds a bearish bias ahead.
They note that the pair has broken lower over the past week, closing below its 200 MA for the first time since 10th September. Renewed downward momentum reflects a pick up in eurozone sovereign debt tensions related to Greece and Spain. The team note evidence of this being visible in the moving of short term German Government Bond Yields into negative territory again.
Looking ahead they note that euro-zone finance ministers are expected to discuss further whether to grant the next tranche of funding to Greece, and measures to help restore fiscal sustainability.
They believe that renewed euro weakness is also a reflection of building expectations of further monetary easing from the ECB. Leading economic indicators have signalled that the economic recession in the euro-zone likely deepened in early Q4 rendering Q3 GDP reports released in the week ahead somewhat outdated.
They note that the pair has broken lower over the past week, closing below its 200 MA for the first time since 10th September. Renewed downward momentum reflects a pick up in eurozone sovereign debt tensions related to Greece and Spain. The team note evidence of this being visible in the moving of short term German Government Bond Yields into negative territory again.
Looking ahead they note that euro-zone finance ministers are expected to discuss further whether to grant the next tranche of funding to Greece, and measures to help restore fiscal sustainability.
They believe that renewed euro weakness is also a reflection of building expectations of further monetary easing from the ECB. Leading economic indicators have signalled that the economic recession in the euro-zone likely deepened in early Q4 rendering Q3 GDP reports released in the week ahead somewhat outdated.
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