Fundamental case for EUR/USD lower continues - RBS

By FXstreet.com | June 24, 2014 AAA

FXStreet (Łódź) - According to the RBS team of analysts, the fundamental case for selling EUR/USD was made stronger with bigger-than-expected rises in the US Markit manufacturing PMI (57.5 in June, a high in this series since 2011), existing home sales and Chicago Fed National Activity Index, vs. a bigger fall than expected in the Eurozone Markit PMIs for manufacturing and services.

Key quotes



"One possible reason for resilience in the EUR is the news that US company GE has agreed to pay $17bn for the energy assets of French company Alstom. The deal was given final approval by the French government on Monday and may involve a large flow from USD to EUR."



"It is also the case that the rise in US yields remains contained as the market presumes the data strength has limited impact on the pace of US policy adjustment."



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