1 Dec 2014
EUR/JPY to rise above 150.00 if the ECB fails to deliver - FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst Omkar Godbole, notes that the EUR/JPY pair gained 4.65% to end higher at 147.62 in November after the BOJ announced a surprise expansion of its monetary stimulus program on Oct. 31st, and anticipates it to rise to 150 if the ECB fails to deliver a policy change announcement this week.
Key Quotes
“The overbought Eurozone bonds, coupled with repeated jawboning of the EUR/USD pair necessitate the ECB delivers on this Thursday.”
“Markets would be happy to hear a clear cut hint of implementation of QE in near-future.”
“However, a Reuters survey indicates the ECB is widely expected to keep its already ultra-loose monetary policy unchanged this week.”
“In such case, the EUR/JPY is likely to see a sharp rally to 150 levels as the failure to deliver would send the EUR/USD pair higher towards 1.26 and 1.28 levels, while the USD/JPY pair is likely to remain stuck in 116.00-118.00 levels.”
“Even if the ECB does delivery, the EUR/JPY pair may still rise towards 149.00-150.00 levels as the single currency would witness “Sell the rumor Buy the fact””
Key Quotes
“The overbought Eurozone bonds, coupled with repeated jawboning of the EUR/USD pair necessitate the ECB delivers on this Thursday.”
“Markets would be happy to hear a clear cut hint of implementation of QE in near-future.”
“However, a Reuters survey indicates the ECB is widely expected to keep its already ultra-loose monetary policy unchanged this week.”
“In such case, the EUR/JPY is likely to see a sharp rally to 150 levels as the failure to deliver would send the EUR/USD pair higher towards 1.26 and 1.28 levels, while the USD/JPY pair is likely to remain stuck in 116.00-118.00 levels.”
“Even if the ECB does delivery, the EUR/JPY pair may still rise towards 149.00-150.00 levels as the single currency would witness “Sell the rumor Buy the fact””