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5 Aug 2013
Flash: Euro pricing – BMO
FXstreet.com (Barcelona) - Stephen Gallo, European Head of FX Strategy at BMO sees Euro being roughly priced for two very broad factors.
Key Quotes:
“Given the positions and recent ranges of the relevant 2-year and 10-year US-German since late June/early July, we view EUR/USD as being roughly priced for two very broad factors”
“1) the narrowing of the relevant 2-year spread against the USD as the Fed has sought to dispel myths that a QE tapering will be followed by a succession interest rate hikes”
“ 2) confirmation of the widely expected pick-up in European activity so far during 2H 2013, or, relief that the data failed to indicate a second leg lower”.
Key Quotes:
“Given the positions and recent ranges of the relevant 2-year and 10-year US-German since late June/early July, we view EUR/USD as being roughly priced for two very broad factors”
“1) the narrowing of the relevant 2-year spread against the USD as the Fed has sought to dispel myths that a QE tapering will be followed by a succession interest rate hikes”
“ 2) confirmation of the widely expected pick-up in European activity so far during 2H 2013, or, relief that the data failed to indicate a second leg lower”.