EUR/USD: Skepticism about euro's upside ahead of NFP – OCBC

FXStreet Insights Team FXStreet

Breaching the 1.2150/60 support left the EUR/USD pair heavy and tilted towards the 1.2100 level. If Fed expectations continue to build post-NFP, there might be scope to explore USD longs against the EUR, in the view of economists at OCBC Bank.

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Potentially south-bound

“Expect near-term consolidation ahead of the Nonfarm Payrolls report, but further downside may materialise if the ECB remains dovish next week.”

“Another strong showing in NFP may compel the market to further price back in Fed tapering/rate hike expectations.”

“We have been skeptics about the sustainability of the EUR’s rise, and now look towards potential downside.”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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