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10 Dec 2015
EUR/USD fade the spikes to 1.10/1.11 – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, recommends selling the pair on tests of the 1.10/1.11 area.
Key Quotes
“Last week’s ECB disappointment will have many scrambling to revise their projections around how large the Fed-ECB policy differential can grow, removing a major downside risk for EUR”.
“Likely dovish guidance by Chair Yellen next week likely exacerbates that story”.
“EUR has probably seen its lows for the year though would favour selling 1.10/1.11 regardless of the timing - pricing for a follow up Fed hike is extremely complacent”.
Key Quotes
“Last week’s ECB disappointment will have many scrambling to revise their projections around how large the Fed-ECB policy differential can grow, removing a major downside risk for EUR”.
“Likely dovish guidance by Chair Yellen next week likely exacerbates that story”.
“EUR has probably seen its lows for the year though would favour selling 1.10/1.11 regardless of the timing - pricing for a follow up Fed hike is extremely complacent”.