17 Mar 2015
Credit Agricole: EUR/USD sees further correction risk – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole views that position squaring ahead of the FOMC meeting might lead to further correction in EUR/USD.
Key Quotes
“Given elevated speculative short positioning and as investors appears to be well prepared for the Fed turning more hawkish this week, we do not exclude further position squaring related EUR/USD upside risk.”
“From a broader angle, however, rallies towards levels of around 1.08 should still prove a sell. This is mainly due to additional room of diverging ECB-Fed monetary policy expectations.”
“Ahead today, the main focus will be on final February CPI readings, the German ZEW survey and a speech by ECB Executive board member Praet.”
“As central bank members indicated already that QE will continue as planned regardless of stabilizing growth and price developments we do not expect incoming data to have any meaningful currency impact.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Given elevated speculative short positioning and as investors appears to be well prepared for the Fed turning more hawkish this week, we do not exclude further position squaring related EUR/USD upside risk.”
“From a broader angle, however, rallies towards levels of around 1.08 should still prove a sell. This is mainly due to additional room of diverging ECB-Fed monetary policy expectations.”
“Ahead today, the main focus will be on final February CPI readings, the German ZEW survey and a speech by ECB Executive board member Praet.”
“As central bank members indicated already that QE will continue as planned regardless of stabilizing growth and price developments we do not expect incoming data to have any meaningful currency impact.”
This content has been provided under specific arrangement with eFXnews.