"The overall degree of activeness inwards the eurozone is real weak, something that ECB speakers (including board fellow member Constancio on Thursday) convey been real corking to emphasize. We give-up the ghost along to come across risks skewed towards farther policy easing from the ECB, inwards contrast to the exit-focused Fed, too nosotros remain brusk EURUSD every bit a merchandise recommendation," BNPP outlines its electrical flow macro-bias on the pair.
Meanwhile, BNPP added a fresh brusk GBP/USD pose to its macro merchandise recommendations targeting a movement downwards to 1.5330 amongst a halt gear upwards at 1.6310.
"A run of rigid information too trouble solid United Kingdom of Great Britain too Northern Ireland front-end rates convey supported the GBP this month, but our STEER™ framework suggests GBPUSD is right away real rich to short-term drivers (see chart) too our BNP Paribas FX Positioning Analysis indicates long positioning inwards Sterling is right away real stretched. We intend roughly combination of United Kingdom of Great Britain too Northern Ireland information disappointment, the States information improvement, too dovish BOE messaging is probable to undermine GBPUSD inwards the weeks ahead too that risk-reward is attractive for novel shorts at electrical flow levels inwards a higher house 1.60 heading into of import information adjacent week," BNPP says every bit rationale behind this call.
Read More: http://www.efxnews.com/story/20937/stay-short-eurusd-against-13730-sell-cable-against-16310-bnp-paribas