EUR/USD Fundamental Analysis September 22, 2014 Forecast The EUR/USD tumbled 62 points to trade at 1.2861 after German PPI met expectations but remained well under the ECB requirements. The US dollar continued to gain momentum to trade at 84.68. The dollar rose 0.2 per cent against a basket of leading currencies after Thursday data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting a sharp slowdown in job growth in August was an aberration. “This week’s FOMC meeting maintains our belief that the process of US monetary tightening continues and this will encourage further advances in long-term real yields and the US dollar,” Deutsche Bank said in a note. The campaign for Scottish Independence, which was largely centered on economic viability, helped the European money markets have an upturn on Friday as the majority of Scotland voted ‘no’ in its referendum. U.S. Treasury Secretary Jack Lew on Friday called on the euro zone and Japan to do more to spur growth as the global economy continues to disappoint, highlighting what is sure to be a bone of contention as Group of 20 ministers gather in Australia. While lauding the strength of the U.S. economy, Lew said more work was needed to achieve faster and more balanced economic growth and to boost demand. “The United States continues to be a source of strength in the global economy,” Lew said in remarks with his Australian counterpart Joe Hockey. The OECD slashed its growth forecasts for major developed economies on Monday, urging Europe to do more to ward off the risk of deflation.
Posted on: Sun, 21 Sep 2014 19:17:51 +0000
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