10 Jan 2014
Flash: EUR/USD positioned for healthy Non Farm Payrolls - BMO Capital Markets
Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets feels that in EUR/USD and GBP/USD, the market is already modestly positioned for a healthy set of numbers out of the US today.
Key Quotes
“With this in mind, we suspect that there will be a decent amount of ‘pain’ on the topside in both of those pairs, should the report be rather weak.”
“The cautiously ‘dovish’ tone in the latest FOMC minutes should also add weight to the USD in this instance.“
“We think the chances of a weekly close in EUR/USD around 1.3650 are high if this is the case. GBP/USD should just about fully track EUR/USD higher under this scenario, towards 1.6480.”
Key Quotes
“With this in mind, we suspect that there will be a decent amount of ‘pain’ on the topside in both of those pairs, should the report be rather weak.”
“The cautiously ‘dovish’ tone in the latest FOMC minutes should also add weight to the USD in this instance.“
“We think the chances of a weekly close in EUR/USD around 1.3650 are high if this is the case. GBP/USD should just about fully track EUR/USD higher under this scenario, towards 1.6480.”