EUR/USD: Despite Strong NFP, EUR/USD Set To Hit 1.20 In Next 1-2 Weeks – Danske

Danske Bank FX Strategy Research notes that EUR/USD fell on today’s NFP announcement, which showed employment rose by 209,000 in July and June was revised up to 231,000.

“The combination of lower unemployment and better wage data sent EUR/USD slightly lower on the announcement, as it supports the Fed’s case for announcing quantitative tightening (shrinking the balance sheet) in September and raising rates again in December,"Danske adds. 

The price a action shows the market’s eagerness to buy EUR/USD. In our view, we could see a push towards 1.20 over the coming one to two weeks, as momentum is very strong.

However, the move is likely to fade ahead of the Jackson Hole symposium on 24-26 August and the ECB meeting on 8 September, with the pressure building on the ECB to raise concerns about the strength of the EUR. The effective EUR is now back to September 2014 levels.

Fundamentally, we expect EUR/USD to rise further over the coming 12 months on relative growth and valuations,“ Danske argues.

Source: Danske Bank Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/IN9CAS4hycA/eurusd-despite-strong-nfp-eurusd-set-hit-120-next-1-2-weeks-danske

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s