9 Jul 2013
Flash: EUR/USD to hit 1.2600 by late July? – Westpac
FXstreet.com (New York) - According to Sean Callow, a Global FX Strategist at Westpac, “Relative growth weighs on the pair even more post-US NFP, while Draghi’s new forward guidance also hurts the EUR/USD.”
However,” if the Eurogroup helps calm nerves over Greece then support at 1.2750 should hold near-term. We still recommend selling rallies to 1.2950/1.3000 on the week, with scope for 1.2600 later in July.” Callow adds. Regarding the USD/JPY, the pair is probably due for some consolidation ahead of Japan’s 21 July upper house elections. Japan’s foreign bond sales also continue. However, with USD sentiment robust we prefer to buy dips towards the 99.00 area.
However,” if the Eurogroup helps calm nerves over Greece then support at 1.2750 should hold near-term. We still recommend selling rallies to 1.2950/1.3000 on the week, with scope for 1.2600 later in July.” Callow adds. Regarding the USD/JPY, the pair is probably due for some consolidation ahead of Japan’s 21 July upper house elections. Japan’s foreign bond sales also continue. However, with USD sentiment robust we prefer to buy dips towards the 99.00 area.