Credit Agricole: The Ides of March, What’s in it for the EUR and USD - eFXnews

FXStreet (Barcelona) - “Will a very busy week ahead put recent FX market trends to the test?,” quotes Credit Agricole, as they preview the key events which could impact the Dollar and the Euro, as noted by eFXnews.

Key Quotes

“The Ides of March (March 15) came to be known for events (eg the assassination of Julius Caesar in 44BC) that shook up the status quo.”

“USD remained in demand at the start of the week as investors continue to add to bets on earlier stimulus removal after the more balanced March Fed minutes.”

“Date this week - retail sales on Tuesday (expected rebound), IP on Wednesday (expected renewed weakness) and March CPI (no change expected in the annual inflation prints) - as well as Fed speakers could strengthen or weaken the case for a June hike.”

“In our view, it would take more upbeat Fed assessment and stronger CPI print to see USD extending its gains on a sustained basis.”

“EUR remains dangerously close to recent multi-year lows. Ahead of the ECB on Wednesday investors could remain wary of any Draghi remarks on further depo rate cuts that could weigh on EUR some more.”

“That said, we expect no changes in ECB policy or constructive economic assessment.”

“EUR lost ground recently also on the back of growing market concerns about Greece with media reports suggesting that Athens has until early next week to submit an improved reform proposal. The uncertainty could linger and keep EUR vulnerable.”

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