12 Nov 2013
Flash: Look to sell EUR/USD rallies to high 1.34s - Westpac
FXstreet.com (Barcelona) - Look to sell EUR/USD into any rallies to high 1.34s, according to Westpac Strategists, targeting the 200dma around 1.3215 near term but prospects for further losses if 'taper' talk stays, the Bank adds.
Key Quotes
"We held a negative weekly bias on EUR last week in expectation of a dovish press conference from ECB president Draghi but obviously didn’t expect that he would also be discussing a rate cut!"
"While no follow up move is likely in Dec, ECB officials have been happy to flag that further action could be taken as needed, such as another LTRO, adjusting forward guidance or even a negative deposit rate."
"Data flow including Eurozone Q3 GDP (Thu) should encourage fresh bearish EUR positioning after IMM spec accounts built a sizeable long stance from Aug to late Oct."
Key Quotes
"We held a negative weekly bias on EUR last week in expectation of a dovish press conference from ECB president Draghi but obviously didn’t expect that he would also be discussing a rate cut!"
"While no follow up move is likely in Dec, ECB officials have been happy to flag that further action could be taken as needed, such as another LTRO, adjusting forward guidance or even a negative deposit rate."
"Data flow including Eurozone Q3 GDP (Thu) should encourage fresh bearish EUR positioning after IMM spec accounts built a sizeable long stance from Aug to late Oct."