FXStreet (Guatemala) – Lee Hardman, currency analyst at the Bank of Tokyo Mitsubishi UFJ explained that the euro is likely to remain within a consolidation phase against the US dollar in the week ahead.
Key Quotes:
“The US dollar is likely to struggle to regain upward momentum in the near-term after the Fed signalled more caution about raising rates. Building evidence of strengthening US economic growth momentum should offer support for the US dollar although it is not yet strong enough to prompt the market to discount a faster pace of rate hikes.”
“The US dollar already appears weak relative to yield spreads which may also help to dampen further downside in the near-term. We continue to believe that the next likely move for the US dollar will be higher after the current period of consolidation ends.”
“The main focus for Europe in the week ahead will be ongoing developments regarding Greece as negotiations between Greece and its creditors have reached crunch time. If an agreement to extend short-term financial support to Greece is not reached by the end of the month, the euro may begin to come under increasing selling pressure as the risk of a Grexident will increase.”
(Market News Provided by FXstreet)