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3 Jun 2015
Sell EUR/USD as focus shifts to US data – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, suggests remaining short on EUR/USD as the attention shifts to the US ADP employment and non-manufacturing ISM data in the US.
Key Quotes
“Bund yields and the Euro have both bounced by (far) more than expected. That highlights lack of liquidity in the bond market (horrible, big issue) and positioning in FX (yes, as CFTC data showed, there really were still big shorts in the Euro).”
“From a technical point of view, our team highlight EUR/USD 1.1040-80 as ‘decisive' support and 1.1315 as the key level to watch on the upside.”
“Even though there's a good chance we get some kind of a Greek one response here is to buy Bunds against Treasuries, sell EUR/USD and wait for the focus to shift back to US economic data (ADP and non-manufacturing ISM today, payrolls Friday), while putting a EUR/USD stop at 1.1320.”
Key Quotes
“Bund yields and the Euro have both bounced by (far) more than expected. That highlights lack of liquidity in the bond market (horrible, big issue) and positioning in FX (yes, as CFTC data showed, there really were still big shorts in the Euro).”
“From a technical point of view, our team highlight EUR/USD 1.1040-80 as ‘decisive' support and 1.1315 as the key level to watch on the upside.”
“Even though there's a good chance we get some kind of a Greek one response here is to buy Bunds against Treasuries, sell EUR/USD and wait for the focus to shift back to US economic data (ADP and non-manufacturing ISM today, payrolls Friday), while putting a EUR/USD stop at 1.1320.”