FXstreet.com (Córdoba) - The dollar is softer amidst lower Spain borrowing costs and heightened expectations of ECB action ahead, according to the BBH team, while the greenback has been also pressured by Fitch comments on US credit rating.
"The euro is seeing a bounce as retracement objectives in the $1.2420-1.2460 area indeed attracted buyers ahead of Bernanke's speech Friday", says BBH.
"The euro is likely to test last week's high near $1.2600 on improved sentiment, and could even test the June 28 high near $1.2700 ahead of Bernanke's Jackson Hole Speech", they add. "However, as we have seen in the past, dollar selling ahead of perceived QE3 risks have invariably been followed by a recovery in the greenback when the Fed disappoints".
"We continue to think Bernanke will not signal QE3 this Friday, and so would look for levels to get short euros in the coming days", they conclude.
"The euro is seeing a bounce as retracement objectives in the $1.2420-1.2460 area indeed attracted buyers ahead of Bernanke's speech Friday", says BBH.
"The euro is likely to test last week's high near $1.2600 on improved sentiment, and could even test the June 28 high near $1.2700 ahead of Bernanke's Jackson Hole Speech", they add. "However, as we have seen in the past, dollar selling ahead of perceived QE3 risks have invariably been followed by a recovery in the greenback when the Fed disappoints".
"We continue to think Bernanke will not signal QE3 this Friday, and so would look for levels to get short euros in the coming days", they conclude.
