Euro exchange rate outlook: "We expect the euro to remain under pressure" - UniCredit
- Written by: Gary Howes
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Euro Rate Today: The euro dollar exchange rate is under fresh pressure however losses against the pound sterling have eased.
Momentum does however remain stacked against the shared currency in the short-term courtesy of recent negative price action.
The outlook for the euro exchange rate complex is currently dominated by tomorrow’s release of preliminary Eurozone inflation figures which are likely to come in very soft.
As such we predict the euro will remain under pressure with traders unwilling to back the shared currency any further. The euro exchange rate complex is as such today:
"We expect the euro to remain under pressure following ECB Board Member Mersch’s remark that the ECB is taking a wide-angle look at its monetary-policy stance ahead of its meeting next week. Markets now seem to be strongly fixated on tomorrow’s release of preliminary EMU CPI, which is likely to come in very soft," says an exchange rate outlook note issued by UniCredit Bank.
UniCredit say EUR-USD may test next strong support levels at 1.3658.
Good bids keep EUR supported for now
We hear from Sean Lee at FXWW that the euro is currently finding support on the observation that good bids on the interbank e-platforms are seen resting at 1.3650.
"Talk of corporate bids starting at 1.3650 as well. Overall sentiment remains negative and most bank traders stated in their reports that they’re short EUR/USD," says Lee.
French bank BNP Paribas issued a short recommendation to clients yesterday, with a 1.32 target.
