FXstreet.com (Barcelona) - The euro has also stabilized following comments from Eurogroup Chair Juncker describing the euro as “dangerously high” which have helped to dampen upward momentum in the near-term notes Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ.
He feels that the impact of Juncker’s comments was somewhat weakened yesterday when ECB council member Nowotny stated that the Euro exchange rate is “not a matter of major concern” while also offering his view that he doesn’t see a long-term upward trend for the Euro.
The Euro still remains under upward pressure in the near-term as both confidence in Euro-zone assets is returning, and the ECB is being out-eased by other major central banks despite the Euro-zone economy under performing.
He finishes by writing, “The rise of the Euro can be viewed as a positive sign that the Eurozone debt crisis is easing and/or a negative sign that the Eurozone is currently losing a currency war to weaken domestic currencies to support growth. It is a dynamic that we anticipate will likely pressure the ECB to resume easing monetary policy later in 2013 weighing upon the Euro.”
He feels that the impact of Juncker’s comments was somewhat weakened yesterday when ECB council member Nowotny stated that the Euro exchange rate is “not a matter of major concern” while also offering his view that he doesn’t see a long-term upward trend for the Euro.
The Euro still remains under upward pressure in the near-term as both confidence in Euro-zone assets is returning, and the ECB is being out-eased by other major central banks despite the Euro-zone economy under performing.
He finishes by writing, “The rise of the Euro can be viewed as a positive sign that the Eurozone debt crisis is easing and/or a negative sign that the Eurozone is currently losing a currency war to weaken domestic currencies to support growth. It is a dynamic that we anticipate will likely pressure the ECB to resume easing monetary policy later in 2013 weighing upon the Euro.”
