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6 Aug 2015
EUR/USD could see the range breached – Westpac
FXStreet (Edinburgh) - Strategist at Westpac Richard Franulovich sees chances of the 1.08-1.14 range in the pair to be breached in the near term.
Key Quotes
“The breakdown in the 2yr bund-Tsy spread to fresh 8yr lows in recent days (-98bp) raises risks of a break in EUR’s three month 1.08-1.14 range sooner than scheduled”.
“The region’s healthy basic balance (driven mainly by trade surpluses rather than capital flows) should however keep the move lower sluggish and frustrating for many”.
“EUR nevertheless a very good sell into 1.10 if seen anytime soon”.
Key Quotes
“The breakdown in the 2yr bund-Tsy spread to fresh 8yr lows in recent days (-98bp) raises risks of a break in EUR’s three month 1.08-1.14 range sooner than scheduled”.
“The region’s healthy basic balance (driven mainly by trade surpluses rather than capital flows) should however keep the move lower sluggish and frustrating for many”.
“EUR nevertheless a very good sell into 1.10 if seen anytime soon”.