Stick with the USD trend – BNPP

By FXStreet FXStreet (Delhi) – Research Team at BNP Paribas, believes that the volatile price action in the first half of December has flushed out speculative USD longs and left positioning fairly clean for longer-term market participants keen to build USD positions for the new year.

Key Quotes

“We added a short EURUSD recommendation Wednesday targeting 1.0400 as the pair traded up to 1.0980 in the aftermath of the FOMC result and remain short AUDUSD from 0.7335 targeting 0.7000. With both trades now in the money, we have trailed the stop on our EURUSD recommendation to entry and on our AUDUSD short to 0.7220, locking in 1.6% gains.”

“The data calendar is quiet Friday in the US ahead of important November personal spending and durable goods data next Tuesday. The normally-hawkish Fed President Lacker is scheduled to speak and he is the last FOMC member we are scheduled to hear from this year.”
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Source:: FX Street