14 Oct 2013
Flash: Euro to benefit – BTMU
FXstreet.com (London) - Lee Hardman, currency analyst at the Bank of Tokyo-Mitsubishi UFJ, said the
euro should continue to benefit from the on going uncertainty over the US debt ceiling given its status as the most liquid alternative to the US dollar.
Key Quotes:
“The negative economic impact from the latest fiscal developments in the US are also serving to push back expectations of when the Fed will begin to taper QE which stands then in even greater contrast with the
ongoing shrinking of the ECB’s balance sheet supporting a higher EUR/USD”.
“ECB Governing Council member Nowotny stated on Friday that the euro is a “potential threat” to the economy should it continue to strengthen cautioning that “if the situation in the US is getting more difficult”, this risk could materialize”.
“The first formal Eurogroup/Ecofin meetings coming after the summer will take place at the start of this week which are
being held ahead of the EU Council meeting later this month”.
“Ireland is set to become the first country to exit its bail out programme on the 15th December”.
“Finance Minister Noonan signalled over the weekend that they may not apply for a precautionary credit line when it exits as Ireland already has cash buffers of about EUR25.0 billion”.
euro should continue to benefit from the on going uncertainty over the US debt ceiling given its status as the most liquid alternative to the US dollar.
Key Quotes:
“The negative economic impact from the latest fiscal developments in the US are also serving to push back expectations of when the Fed will begin to taper QE which stands then in even greater contrast with the
ongoing shrinking of the ECB’s balance sheet supporting a higher EUR/USD”.
“ECB Governing Council member Nowotny stated on Friday that the euro is a “potential threat” to the economy should it continue to strengthen cautioning that “if the situation in the US is getting more difficult”, this risk could materialize”.
“The first formal Eurogroup/Ecofin meetings coming after the summer will take place at the start of this week which are
being held ahead of the EU Council meeting later this month”.
“Ireland is set to become the first country to exit its bail out programme on the 15th December”.
“Finance Minister Noonan signalled over the weekend that they may not apply for a precautionary credit line when it exits as Ireland already has cash buffers of about EUR25.0 billion”.