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12 Aug 2013
Flash: EUR/USD likely held by 1.3400 on Greek woes – BMO Capital Markets
FXstreet.com (New York) - Greg Anderson at BMO Capital Markets outlines the outlook of the USD/CAD and EUR/USD.
Key quotes
“For the immediate term would expect to see USD/CAD drift a little higher but would expect 1.0350 to cap any rally again. With the overhang of short CAD positions still in the market, the risk is that we see further CAD appreciation in the short-term.”
Despite the gloomy picture from the numbers all of last week, 1.0250 should hold any push lower intra-day today. No data today and it is a very light on the data front for the rest of this week too.”
In EUR/USD, “we have seen a lot of EUR bought over the last week or so, as USD longs have been liquidated. In fact, so much so that positioning has now switched back in favor of the single currency, as data releases from the EZ have continued to improve. That being said, we still remain below 1.3400, and the rumblings of more aid for Greece resurface. We prefer to trade from the short side in EUR/USD for the moment, and will be a seller of rallies into 1.3370-80.”
Key quotes
“For the immediate term would expect to see USD/CAD drift a little higher but would expect 1.0350 to cap any rally again. With the overhang of short CAD positions still in the market, the risk is that we see further CAD appreciation in the short-term.”
Despite the gloomy picture from the numbers all of last week, 1.0250 should hold any push lower intra-day today. No data today and it is a very light on the data front for the rest of this week too.”
In EUR/USD, “we have seen a lot of EUR bought over the last week or so, as USD longs have been liquidated. In fact, so much so that positioning has now switched back in favor of the single currency, as data releases from the EZ have continued to improve. That being said, we still remain below 1.3400, and the rumblings of more aid for Greece resurface. We prefer to trade from the short side in EUR/USD for the moment, and will be a seller of rallies into 1.3370-80.”