FXStreet (Edinburgh) – Jane Foley, Senior Currency Strategist at Rabobank, expects the pair to navigate the 1.1150-1.1467 range in the near term.
Key Quotes
“Yet again another round of talks between Greece and its creditors dissolved without any concrete signs of progress over the weekend. Insofar as Greece is due to pay the IMF EUR1.5 bln in bundled debts at the end of the month, the market is growing increasingly wary about the prospect of default”.
“While the EUR is vulnerable to bad news the market is already short EURs, consequently there is a risk that the EUR will be squeezed higher if signs of a deal do appear”.
“The June 16/17 policy meeting will be following by a press conference from Chair Yellen which will allow her an opportunity to run through the Bank’s latest economic projections. Any change in the Fed’s dot plots will be dissected for clues as to whether or not the FOMC is positioning itself for a rate hike as soon as September”.
“The scope for surprises from both Greece and the Fed threatens to bring a volatile week for EUR/USD. The June high of EUR/USD1.1386 is likely to provide resistance, though a break above could put the May high at 1.1467 in sights. On the downside initial support is provided by last Friday low around 1.1150”.
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