Flash: EUR priced higher to coincide with post-OMT credit cycle - BMO Capital Markets

FXstreet.com (Barcelona) - Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets has made risk assessments on the major currencies, based on the consideration that the financial world today is largely at the mercy of central bank policy shifts.

Key Quotes

“For the USD, the FX space would be somewhat overpriced for ‘no taper’.”

“For the EUR, the FX space has driven the price of the currency up in part to coincide with the post-OMT credit cycle, but probably extrapolated the real economic effects of that cycle too far into the future.”

“For the GBP, the move up in UK rates is probably a bit too extreme given what that rise in rates could potentially do to the recovery, should the former persist.”

“The JPY probably has the least amount of ‘gaps’ in its value at present, broadly speaking.”