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5 May 2016
EUR/USD: this is all about the greenback - BTMU
Analysts at Bank of Tokyo Mitsubishi explained that the main driver of the move higher for EUR/USD in recent months has been broad based US dollar weakness rather than euro specific factors.
Key Quotes:
"The US dollar has weakened significantly as the Fed has adopted a more cautious outlook for policy tightening encouraging a sharp reversal of long US dollar positions which had been built up since the middle of 2014.
It has been both the largest and most persistent reversal of the stronger US dollar trend reinforcing expectations that the tide may have finally turned for the US dollar with further weakness potentially ahead."
Key Quotes:
"The US dollar has weakened significantly as the Fed has adopted a more cautious outlook for policy tightening encouraging a sharp reversal of long US dollar positions which had been built up since the middle of 2014.
It has been both the largest and most persistent reversal of the stronger US dollar trend reinforcing expectations that the tide may have finally turned for the US dollar with further weakness potentially ahead."