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3 Aug 2015
EUR bearishness unchanged – TDS
FXStreet (Edinburgh) - Strategists at TD Securities reiterated their negative view on the single currency.
Key Quotes
“For all the Greek drama, nothing has really changed in the trajectory, trackings, or expectations for the Eurozone”.
“Surveys and lending data have shrugged off recent Greek disruptions and GDP likely returned to a 2% annualized pace with scope to improve further”.
“The softer oil profile will reduce some of the speed with which inflation moves back to target, but the upward trend is still largely baked in for the coming 6-9 months”.
“With tensions over Greece subsiding, we maintain a neutral-to-bearish outlook on the EUR as improving growth and robust inflows are offset by ongoing QE by the ECB”.
“That said, we expect the EUR to underperform against currencies where the central banks are moving toward tighter policy. In particular, this suggests that EUR/USD and EUR/GBP are likely to re-test recent lows in the weeks ahead”.
Key Quotes
“For all the Greek drama, nothing has really changed in the trajectory, trackings, or expectations for the Eurozone”.
“Surveys and lending data have shrugged off recent Greek disruptions and GDP likely returned to a 2% annualized pace with scope to improve further”.
“The softer oil profile will reduce some of the speed with which inflation moves back to target, but the upward trend is still largely baked in for the coming 6-9 months”.
“With tensions over Greece subsiding, we maintain a neutral-to-bearish outlook on the EUR as improving growth and robust inflows are offset by ongoing QE by the ECB”.
“That said, we expect the EUR to underperform against currencies where the central banks are moving toward tighter policy. In particular, this suggests that EUR/USD and EUR/GBP are likely to re-test recent lows in the weeks ahead”.