EUR/USD door open for a test of 1.0550 – OCBC

FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, sees a visit of the mid-1.05s if 1.06 is breached.

Key Quotes

“Draghi’s dovish comments on Friday may keep the EUR on the defensive this week with the movement in implied yield differentials for the EUR-USD also negative for the common currency”.

“On the CFTC front, net leveraged EUR shorts increased for the fourth consecutive week and if 1.0600 is violated, we see risks of an extension towards 1.0550 in due course”.