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3 Mar 2015
Further downside lies ahead for EUR – Rabobank
FXStreet (Edinburgh) - In light of the upcoming ECB’s QE, Senior FX Strategist at Rabobank Jane Foley expects the single currency to intensify its bearish tone.
Key Quotes
“The EUR has been undermined last week by falling Eurozone bond yields on the back of speculation that the ECB could find it difficult to find sellers of bonds as it launches its QE programme in March”.
“This move has driven up GBP’s yield advantage vs. the EUR which has pushed EUR/GBP to levels last seen in 2007”.
“Even though German economic survey days has seen an improvement in recent weeks, the dynamics behind the ECB’s forthcoming QE programme look set to have a more overwhelming impact on yields and thus on the EUR in the coming weeks as investors position themselves for the start of bond buying schedule”.
Key Quotes
“The EUR has been undermined last week by falling Eurozone bond yields on the back of speculation that the ECB could find it difficult to find sellers of bonds as it launches its QE programme in March”.
“This move has driven up GBP’s yield advantage vs. the EUR which has pushed EUR/GBP to levels last seen in 2007”.
“Even though German economic survey days has seen an improvement in recent weeks, the dynamics behind the ECB’s forthcoming QE programme look set to have a more overwhelming impact on yields and thus on the EUR in the coming weeks as investors position themselves for the start of bond buying schedule”.