FXstreet.com (Barcelona) - Spain, Italy and Greece were far too much for the EUR to cope with at the beginning of the trading week, where the single currency hit fresh 2-year lows against the buck around the 1.2065 area.
C.Sutton, Chief Currency Strategist at Scotiabank, comments “…the June 2010 low (1.1877) will likely act as a magnet as the market fixates on that level…”, and she suggests a test of that kevels in the upcoming sessions.
“However, with the dual threat of QE3 on the back of a weak economy and the looming ‘fiscal cliff’, we find it hard to forecast a sustainably and materially stronger USD into year-end. However, in the near-term the outlook for EURUSD is clearly bearish…”
C.Sutton, Chief Currency Strategist at Scotiabank, comments “…the June 2010 low (1.1877) will likely act as a magnet as the market fixates on that level…”, and she suggests a test of that kevels in the upcoming sessions.
“However, with the dual threat of QE3 on the back of a weak economy and the looming ‘fiscal cliff’, we find it hard to forecast a sustainably and materially stronger USD into year-end. However, in the near-term the outlook for EURUSD is clearly bearish…”
