EUR/USD below 1.1500 moving in to consolidation – BTMU

FXStreet (Guatemala) – Analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd. explained that they are setting a wider trading range for the week ahead in EUR/USD.

Key Quotes:

“We appear to be getting ever closer to the potential for some form of deal being announced between Greece and its creditors – the EU, the IMF and the ECB. While positive comments from Greek officials need to be taken with a pinch of salt, there does appear to have been some progress recently that may culminate in some form of announcement.”

“That might prompt a sharp rally in EUR/USD but we see any rally as being fleeting with renewed selling likely to come into the market quickly. Greece is not the issue for EUR/USD – it’s the evidence that the US economy is recovering and as long as the data over the coming week points to further gradual improvement, then the dollar is set to remain well underpinned.”

“The ISM manufacturing report and the ADP employment report will be key in shaping expectations for the NFP next Friday and should keep the EUR/USD rate under downward pressure.”

“We’ve set a neutral bias for the week ahead given we have now corrected quite sharply lower since 15th May and it will be the following week when we may get another big more to the downside in response to the NFP data at the end of next week. In the meantime the data is more likely to allow for some consolidation after the drop from 1.1500 at the beginning of last week.”

Analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd. explained that they are setting a wider trading range for the week ahead in EUR/USD.

(Market News Provided by FXstreet)