4 Nov 2013
Flash: EUR to remain on soft side ahead of ECB - BMO Capital Markets
FXstreet.com (Barcelona) - Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets feels that all things considered, he still expect the EUR to remain on the ‘soft’ side in the run-up to this Thursday’s ECB press conference.
Key Quotes
“Technically and fundamentally, EUR/AUD, EUR/NZD and possibly EUR/NOK appear ripe to test some new downside before then, relative to their October ranges.”
“EUR/USD, on the other hand, is probably a better sell on rallies above 1.3520 for now, rather than an opportunity for opening new, aggressive shorts below 1.3500 the figure.”
“In terms of our own thinking, we are disposed to look for modest EUR downside in the run-up to Thursday not as an opportunity to set up for more aggressive EUR weakness following the ECB, but rather as an opportunity to buy some EUR back from attractive levels if the events of Thursday don’t actually end up being quite so dovish as some might expect.”
Key Quotes
“Technically and fundamentally, EUR/AUD, EUR/NZD and possibly EUR/NOK appear ripe to test some new downside before then, relative to their October ranges.”
“EUR/USD, on the other hand, is probably a better sell on rallies above 1.3520 for now, rather than an opportunity for opening new, aggressive shorts below 1.3500 the figure.”
“In terms of our own thinking, we are disposed to look for modest EUR downside in the run-up to Thursday not as an opportunity to set up for more aggressive EUR weakness following the ECB, but rather as an opportunity to buy some EUR back from attractive levels if the events of Thursday don’t actually end up being quite so dovish as some might expect.”