Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
May 24 - 09:55 AM

EUR: 2 Factors Behind EUR/USD Bounce; What's Next? - MUFG

By eFXdata  —  May 24 - 08:30 AM

MUFG Research discusses EUR/USD outlook and sees a limited scope for further upside in the near-term.

"There were two catalysts yesterday for a further bounce in EUR/USD. The first was the comments from ECB President Lagarde who explicitly spoke of the end to negative rates by the end of Q3 – implying two consecutive 25bp rate hikes in July and September...The second factor was a newer development – the comment from President Biden in Asia that he would consider removing some of the China tariffs introduced by President Trump. We’d argue this was more a political decision than an economic one, at least initially," MUFG notes. 

"The announcement is certainly another factor that may make investors wary of selling EUR/USD close to the lows and ahead of parity. We still suspect renewed tightening financial market conditions lies ahead which would likely prove more important but the price action of late certainly points to limits to notable further declines in EUR/USD," MUFG adds. 

Source:
MUFG Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2022 eFXdata · All Rights Reserved
!