12 Jan 2015
EUR/GBP might decline to 0.7200 this year – BNPP
FXStreet (Barcelona) - Analysts at BNP Paribas, anticipate EUR/GBP to head towards 0.72 levels this year with soft EUR and rate hikes from BOE facilitating the bearish outlook for the pair.
Key Quotes
“We are taking advantage of early 2015 GBP underperformance to add downside EURGBP exposure via both spot and options. We enter short EURGBP at 0.7812 targeting a decline to 0.7560 (2000-2007 trend line support) over the months ahead. The stop-loss is placed at 0.7930.”
“We forecast the pair to reach 0.72 this year and provide attractive option structures to position for this. The recommendation reflects our broadly bearish view on the EUR as well as our expectation that rates markets will move to bring forward pricing for Bank of England rate hikes from Q1 2016 as wage pressure begins to build.”
Key Quotes
“We are taking advantage of early 2015 GBP underperformance to add downside EURGBP exposure via both spot and options. We enter short EURGBP at 0.7812 targeting a decline to 0.7560 (2000-2007 trend line support) over the months ahead. The stop-loss is placed at 0.7930.”
“We forecast the pair to reach 0.72 this year and provide attractive option structures to position for this. The recommendation reflects our broadly bearish view on the EUR as well as our expectation that rates markets will move to bring forward pricing for Bank of England rate hikes from Q1 2016 as wage pressure begins to build.”