Forex Flash: The slow shift from European to US uncertainty – Commerzbank
FXstreet.com (Barcelona) - Ulrich Leuchtmann, Head of FX Research at Commerzbank believes that a slow shift in focus, away from the Eurozone crisis, and towards US monetary policy is under way.
Markets look like they are slowly starting to focus on tomorrow's Fed meeting which above all means danger for the Greenback. Therefore, he finds it hardly surprising that EURUSD surged to 1.2962 this morning and USDJPY to 82.31. Leuchtmann believes that this is the result of choosing between a rock and a hard place: the currency on which news flow is focussing is the one that suffers. He writes, "Be it the many shades of the euro zone crisis (no, it is not over), be it the outlook of a new monetary and fiscal policy in an LDP-governed Japan or the prospect of the Fed further intensifying its ultra-expansionary monetary policy."
Markets look like they are slowly starting to focus on tomorrow's Fed meeting which above all means danger for the Greenback. Therefore, he finds it hardly surprising that EURUSD surged to 1.2962 this morning and USDJPY to 82.31. Leuchtmann believes that this is the result of choosing between a rock and a hard place: the currency on which news flow is focussing is the one that suffers. He writes, "Be it the many shades of the euro zone crisis (no, it is not over), be it the outlook of a new monetary and fiscal policy in an LDP-governed Japan or the prospect of the Fed further intensifying its ultra-expansionary monetary policy."
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