EUR/USD: This is All about the Greenback - BTMU
Analysts at Bank of Tokyo Mitsubishi explained that the main driver of the move higher for EUR/USD in recent months has been broad based US dollar weakness rather than euro specific factors.
Key Quotes:
"The
US dollar has weakened significantly as the Fed has adopted a more
cautious outlook for policy tightening encouraging a sharp reversal of
long US dollar positions which had been built up since the middle of
2014.
It has been both the largest and most persistent reversal
of the stronger US dollar trend reinforcing expectations that the tide
may have finally turned for the US dollar with further weakness
potentially ahead."
