5 Nov 2013
Flash: Sell EUR/JPY at 133.20, with a target of 128.00 - HSBC
FXstreet.com (Barcelona) - According to HSBC FX Strategy Team, selling EUR/JPY looks like an attractive trade.
Key Quotes
"The market has two points of focus in the near term, namely the ECB meeting on Thursday 7 November and the US employment report the following day. We believe the combination of these events will see the recent EUR sell-off extend despite the fact that it has moved quite far already."
"Our recommended trade is to sell EUR-JPY at 133.20, with a target of 128.00, and a stop at 135.80. We do not expect the ECB to cut rates at the November meeting, but the press conference is likely to keep the EUR under pressure given the doves will be energised by the steep decline in inflation, higher unemployment, curtailed credit growth and a still high EUR."
"We chose the JPY as the long leg of our trade as any further increase in the probability attached to 2013 Fed tapering would challenge the risk on mood, and the JPY is best placed to capitalise."
Key Quotes
"The market has two points of focus in the near term, namely the ECB meeting on Thursday 7 November and the US employment report the following day. We believe the combination of these events will see the recent EUR sell-off extend despite the fact that it has moved quite far already."
"Our recommended trade is to sell EUR-JPY at 133.20, with a target of 128.00, and a stop at 135.80. We do not expect the ECB to cut rates at the November meeting, but the press conference is likely to keep the EUR under pressure given the doves will be energised by the steep decline in inflation, higher unemployment, curtailed credit growth and a still high EUR."
"We chose the JPY as the long leg of our trade as any further increase in the probability attached to 2013 Fed tapering would challenge the risk on mood, and the JPY is best placed to capitalise."