Wednesday, November 11, 2015

EUR/USD poised for further declines – BTMU

FXStreet (Edinburgh) - Derek Halpenny, European Head of GMR at BTMU has emphasized the negative prospects for the pair in the months to come.

Key Quotes

“Monetary policy divergence is the well-known factor undermining EUR/USD but a number of other factors came to the fore yesterday to undermine sentiment and should serve as a reminder that other negative euro risks could emerge going forward”.

“There were four developments yesterday to worry investors – (1) The first tranche of EUR 2bn for Greece under the new bailout deal with the euro-zone was delayed after a disagreement over household mortgage protection”;

“(2) The minority government in Portugal fell with a left-leaning anti-austerity coalition voting down the government’s program following the election six weeks ago”;

“(3) Catalonia passed a resolution in parliament declaring the start of the process toward independence with the text including a directive that court decisions made in Madrid no longer applied in Catalonia”;

“and (4) According to a spokesman for the Federal Constitutional Court in Germany, there are now three challenges to be heard on the ECB’s QE program”.
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