Back
14 Apr 2015
EUR/GBP could hit 0.7400 – Westpac
FXStreet (Edinburgh) - In the view of strategists at Westpac, the European cross could extend its upside to the area of 0.7400.
Key Quotes
“Markets are belatedly giving the UK general election the attention it warrants and as such GBP should continue to underperform near term”.
“EUR/GBP should find buyers under 0.7200 and push back towards 0.7400 near term, though we see it lower on a 3 month view once election uncertainty has cleared and as the weight of ECB QE continues to bear down on EUR long term prospects”.
“GBP remains out of favour for another week though the model’s appetite for shorting GBP is waning”.
“This week’s GBP short (-6.3%) is half of the short position held barely two weeks ago”.
“A new trend (weekly) low close last week completed the recent multi-week period of consolidation. Focus returns to the low momentum downtrend”.
Key Quotes
“Markets are belatedly giving the UK general election the attention it warrants and as such GBP should continue to underperform near term”.
“EUR/GBP should find buyers under 0.7200 and push back towards 0.7400 near term, though we see it lower on a 3 month view once election uncertainty has cleared and as the weight of ECB QE continues to bear down on EUR long term prospects”.
“GBP remains out of favour for another week though the model’s appetite for shorting GBP is waning”.
“This week’s GBP short (-6.3%) is half of the short position held barely two weeks ago”.
“A new trend (weekly) low close last week completed the recent multi-week period of consolidation. Focus returns to the low momentum downtrend”.