Back
2 May 2013
Forex Flash: EUR/USD pegged at one-month target of 1.2900 – Westpac
FXstreet.com (Barcelona) - Eurozone bond markets are pricing in a great deal of good news in the periphery, or at least skyhigh confidence in the ECB/ESM bond backstop. It is hard to see significant gains from here.
According to Global FX Strategist Sean Callow at Westpac, “We would prefer to be sellers on rallies, retaining our EUR/USD 1.2900 one-month target. Meanwhile, the GBP/USD is still our preferred trade, long from 1.5300. The BoE MPC should be comfortable with current policy settings, doing no damage to sterling, as spec shorts are unwound.
Finally, “The flutter on EUR/ CHF looks to be over, with 1.2150/1.2200 support in the weeks leading up to June’s SNB review.” Callow adds.
According to Global FX Strategist Sean Callow at Westpac, “We would prefer to be sellers on rallies, retaining our EUR/USD 1.2900 one-month target. Meanwhile, the GBP/USD is still our preferred trade, long from 1.5300. The BoE MPC should be comfortable with current policy settings, doing no damage to sterling, as spec shorts are unwound.
Finally, “The flutter on EUR/ CHF looks to be over, with 1.2150/1.2200 support in the weeks leading up to June’s SNB review.” Callow adds.