10 Mar 2016
EUR/USD still a ‘sell on rallies’ – Westpac
Strategist at Westpac Richard Franulovich has recommended selling the pair on an occasional test of the 1.1200 area.
Key Quotes
“EUR/USD is materially overvalued against 2yr Bund-Tsy spreads, the latter suggesting 1.05/06 is more “reasonable”.
“That said a run at 1.12 likely if Draghi does not leapfrog expectations, as seems likely. Any squeeze though should lack legs, the FOMC a week later likely to sound more hawkish by noting that future meetings are live and the risks are balanced”.
“EUR/USD a sell into 1.12”.
Trade the ECB rate decision and Mario Draghi speech – Live Coverage
Key Quotes
“EUR/USD is materially overvalued against 2yr Bund-Tsy spreads, the latter suggesting 1.05/06 is more “reasonable”.
“That said a run at 1.12 likely if Draghi does not leapfrog expectations, as seems likely. Any squeeze though should lack legs, the FOMC a week later likely to sound more hawkish by noting that future meetings are live and the risks are balanced”.
“EUR/USD a sell into 1.12”.
Trade the ECB rate decision and Mario Draghi speech – Live Coverage