The euro is trading near the top of its recent range but further gains could be limited as risk aversion looms in the background, according to currency strategists.Geoffrey Yu, FX strategist from UBS, said their outlook is bearish on the euro as the global and European economies continue to weaken. The fundamental data is still negative and markets will continue to flock to safe haven currencies, he said."The risk gains we have see in the last two days could be wiped away with a bad nonfarm payrolls report," he said. "And we are expecting another weak employment report."Yu said the 1.30 level is going to act as a ceiling for the EUR/USD in the shorter term. With such a volatile market, Yu said he's expecting the pair to bounce between 1.25 and 1.30.
Tyson Wright, senior currency trader at Custom House, said he's not convinced the euro will move higher against the U.S. dollar, especially ahead of the European Central Bank's rate decision. The ECB is expected to hold rates at 2.00% on Thursday.
Wright said there is a risk that the central bank isn't being proactive enough to support the economy and that the result could be a sharp selloff in the euro.The euro was up 0.0105 to 1.2948 against the U.S. dollar. The euro was unchanged at 1.5987 against the Canadian dollar. The pound sterling was down 0.0022 to 1.1085 euros. The euro was up 0.68 points to 115.56 against the yen. All data taken at 12:41 p.m. EST
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