8 Apr 2014
EUR/USD: Looking to sell in the mid 1.37s - Westpac
FXStreet (Bali) - Westpac FX Strategy Team looks to sell EUR/USD in the mid-1.37s, looking for 1.35 multi-week.
Key Quotes
"The ECB's steady hand last week provides little comfort to EUR, with ECB officials talking with striking candour about the possibility of QE. While agreement on such action is unlikely near term, the headlines on policy options should keep coming (e.g. negative deposit rates), helping cap EUR rallies. EUR/USD already looked pricey judged against both short and long term interest rate spreads, arguably overvalued by around 10%. We would look to sell EUR/USD in the mid-1.37s, looking for 1.35 multi-week."
Key Quotes
"The ECB's steady hand last week provides little comfort to EUR, with ECB officials talking with striking candour about the possibility of QE. While agreement on such action is unlikely near term, the headlines on policy options should keep coming (e.g. negative deposit rates), helping cap EUR rallies. EUR/USD already looked pricey judged against both short and long term interest rate spreads, arguably overvalued by around 10%. We would look to sell EUR/USD in the mid-1.37s, looking for 1.35 multi-week."