EUR shorts, a game to play again – BNP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, suggest that they remain short EURUSD with a 1.09 target (from 1.1450) with the stop trailed to 1.1360.

Key Quotes

“The pair has given back some of its recent gains but BNP Paribas STEER™ continues to signal scope for a further decline with an estimated fair value of around 1.05. The decline in the eurozone front-end yields key driver of EURUSD.”

“The euro 2y swap rate fell from +4bp to -3bp and our rates strategists see scope for a further decline to -7bp. Our BNP Paribas FX Positioning Analysis indicates that there is plenty of scope for EUR shorts to be rebuilt towards levels that prevailed earlier this year.”

“Today we expect Eurozone M3 to accelerate to 4.9% y/y but after a strong ECB easing policy signal last week we think the EUR’s sensitivity to data will be low.”
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Source:: FX Street