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23 Sep 2013
Flash: Fade USD sell-offs in EUR/USD and GBP/USD - BMO
FXstreet.com (Barcelona) - According to Stephen Gallo, European Head of FX Strategy at BMO Financial Group, the USD looks poised to trade under pressure short term.
Key Quotes
"Unless this week’s July Fed minutes suggest that the majority of FOMC members sought to delay the start of QE tapering until year-end (i.e. well beyond September), we prefer to fade USD sell-offs in EUR/USD and GBP/USD between 1.3260/1.3380 and 1.5540/1.5720 respectively."
"Nevertheless, market participants should watch the Euro Area PMIs for August due Thursday. A pan-Euro Area PMI reading (due 0900 London time on Thursday) in the 52.5-53.5 range is likely to set expectations growing for a faster pace of growth during Q3 than 0.3%-0.4% QoQ. Data like this next week amidst thin summer markets could easily usher more pain in EUR/USD."
Key Quotes
"Unless this week’s July Fed minutes suggest that the majority of FOMC members sought to delay the start of QE tapering until year-end (i.e. well beyond September), we prefer to fade USD sell-offs in EUR/USD and GBP/USD between 1.3260/1.3380 and 1.5540/1.5720 respectively."
"Nevertheless, market participants should watch the Euro Area PMIs for August due Thursday. A pan-Euro Area PMI reading (due 0900 London time on Thursday) in the 52.5-53.5 range is likely to set expectations growing for a faster pace of growth during Q3 than 0.3%-0.4% QoQ. Data like this next week amidst thin summer markets could easily usher more pain in EUR/USD."