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19 Feb 2013
Forex Flash: EUR/USD, the higher the LTRO repayment, the higher the Euro – JPM
As noted by JP Morgan analyst Jan Loeys: “Early repayments for LTRO-II will be announced Friday, and we expect €100-€125bn,” Jan says, while EUR/USD trades last at 1.3355, mostly unchanged so far for the week, with US markets closed Monday over holiday.
“The higher the figure, the higher the euro,” the analyst suggests, adding: “though peripheral banks may be reluctant to prepay much ahead of Italian elections on February 24-25. Thus EUR/USD, which overshot after LTRO-1 repayment, should stay in the low 1.30s,” he concludes.
“The higher the figure, the higher the euro,” the analyst suggests, adding: “though peripheral banks may be reluctant to prepay much ahead of Italian elections on February 24-25. Thus EUR/USD, which overshot after LTRO-1 repayment, should stay in the low 1.30s,” he concludes.