Deutsche Bank says stay bearish:
adding that it does not think the pair's rally seen in recent sessions has legs for three reasons. "First, we think the market is underestimating the dovishness behind last week's ECB press conference," Deutsche Bank notes. Secondly, a soaring EUR/JPY could serve as a particular drag on Germany and its export sector. "Finally, we believe the market's knee-jerk reaction to weaken the USD ahead of a large new liquidity injection from the BOJ will have little staying power," says Deutsche Bank, adding that BOJ easing reduces the odds of more QE from the Fed. "We believe the first 'tightening' from the Fed in the form of QE tapering comes this year." EUR/USD currently trades up at 1.3108, while EUR/JPY trades at 130.250.BarCap
With the market approaching 1.3115, retracement resistance we are paring our strong bullish view. We are patiently awaiting a move above 1.3115 to confirm an extension to 1.3230. Overall, we view gains as corrective and would look for topping signs into next week. A close back below 1.3000 is needed to signal a near-term top is already in place.
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