19 Nov 2013
Flash: Look to sell EUR/USD rallies circa 1.3550 - Westpac
FXstreet.com (Barcelona) - Look to sell rallies to mid-1.35s in EUR/USD, notes Westpac FX Strategy Team.
Key Quotes
"Broad USD softness post-Yellen appearance should allow the pair to extend to around 1.3550 but we see little upside beyond there."
"European PMIs are likely to be underwhelming, while ECB officials are happy to emphasize that they still have easing options despite a 0.25% benchmark rate and an aversion to outright QE."
"Plenty of scope for fresh shorts, with specs still slightly long EUR last week. Look to sell rallies to mid-1.35s or EUR/GBP (ideally near 0.85 if seen) to remove USD mood swings from the bearish euro stance."
Key Quotes
"Broad USD softness post-Yellen appearance should allow the pair to extend to around 1.3550 but we see little upside beyond there."
"European PMIs are likely to be underwhelming, while ECB officials are happy to emphasize that they still have easing options despite a 0.25% benchmark rate and an aversion to outright QE."
"Plenty of scope for fresh shorts, with specs still slightly long EUR last week. Look to sell rallies to mid-1.35s or EUR/GBP (ideally near 0.85 if seen) to remove USD mood swings from the bearish euro stance."