US data rebound expected, but remaining patient on the EUR trade – KBC Bank

FXStreet (Barcelona) - The KBC Bank Research Team adopts a wait and see approach before going short on EUR/USD.

Key Quotes

“We hold on to the view that the US data will soon come back to the forefront once a Greek debt deal is reached. A buy-the-rumour, sell-the-fact reaction in the euro is very well possible at that time. Still, this doesn’t tell anything on how far the current short squeeze has to go as long as the political manoeuvring on the Greek debt deal persists.”

“We wait for signs that the short-squeeze has run its course to sell EUR/USD. Of course, this approach will come under pressure in case of a disappointing US payrolls report.”