The Bank of Tokyo-Mitsubishi UFJ FX Team offers his outlook int the EUR/USD for the week ahead.
Key Quotes
"The US dollar has lost some upward momentum early this month after very strong gains recorded in January. The latest economic data releases from the US both in terms of growth and inflation have started to disappoint expectations helping to dampen the US dollar’s upward momentum in the near-term."
"Another solid non-farm payrolls report is expected although employment growth may have started to moderate. Earnings growth will also be watched closely to assess if the Fed remains on course to begin raising rates from the middle of this year. Investors may be wary that US policymakers could display more concern over US dollar strength at the upcoming G20 meeting."
"In contrast, the euro-zone economy appears to be gradually regaining upward momentum although growth still remains weak. Looser ECB policy, a marked weakening of the euro, and lower energy prices are all stimulating growth in the euro-zone."
"The EU Leaders Summit will be in focus in the week ahead as the new Greek government attempts to reach a new debt agreement with its international creditors. Recently there have been favourable signs that the Greek government is willing to compromise by dropping its demand for a debt write off."
Key Quotes
"The US dollar has lost some upward momentum early this month after very strong gains recorded in January. The latest economic data releases from the US both in terms of growth and inflation have started to disappoint expectations helping to dampen the US dollar’s upward momentum in the near-term."
"Another solid non-farm payrolls report is expected although employment growth may have started to moderate. Earnings growth will also be watched closely to assess if the Fed remains on course to begin raising rates from the middle of this year. Investors may be wary that US policymakers could display more concern over US dollar strength at the upcoming G20 meeting."
"In contrast, the euro-zone economy appears to be gradually regaining upward momentum although growth still remains weak. Looser ECB policy, a marked weakening of the euro, and lower energy prices are all stimulating growth in the euro-zone."
"The EU Leaders Summit will be in focus in the week ahead as the new Greek government attempts to reach a new debt agreement with its international creditors. Recently there have been favourable signs that the Greek government is willing to compromise by dropping its demand for a debt write off."
