FXStreet (Barcelona) – Higher volatility in the near-term is keeping the guesswork for EUR/USD price action as less certain, but any rebounds will be temporary, notes Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ.
Key Quotes
“Euro short positions remain vulnerable to a further squeeze in the near-term while volatility in the euro-zone bond market remains elevated. Higher volatility in the euro-zone bond market is feeding through and helping to maintain higher volatility in the euro as well which has been evident so far at the euro’s current low valuation.”
“The direction of the euro is becoming less predictable in the near-term amidst higher volatility although we remain comfortable with our underlying view that the euro should remain weak with any rebounds likely to prove temporary.”
(Market News Provided by FXstreet)