FXStreet (Edinburgh) – Strategist Richard Franulovich at Westpac sees the pair grinding lower in the medium term against a backdrop of better conditions in the US economy and prospects of a September rate hike.
Key Quotes
“EUR/USD’s biggest two-day surge in almost six years has clouded what appeared to be a strong resumption of the downtrend”.
“But we assume confi dence in the Q2 US outlook and Sep Fed rate hike odds will firm amid probably decent updates on both payrolls and retail sales, consistent with the bottoming out signs emanating from our US data surprise index”.
“EUR may well see a small bounce if Greek default risk can be averted but we suspect any gains on this front will prove fleeting”.
(Market News Provided by FXstreet)