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11 Mar 2015
EUR/USD may be targeting 1.02-04 near term - Nomura
FXStreet (Bali) - According to Jens Nordvig, FX Strategist at Nomura, a quick move to the 1.02-1.04 area in EUR/USD is possible.
Key Quotes
"Additional downside delta in EURUSD may look attractive based on: 1) the view that implied probability of a June liftoff could shift to 70-80% if we get better US data in the next few weeks (after forward guidance is weakened); 2) the large fixed income outflows from the eurozone, which we have been highlighting; and 3) a pronounced technical breakdown."
"In that scenario, a quick move to the 1.02-1.04 area is possible, and we are looking at strategies to leverage such a view, but have been missing decent entry points so far."
Key Quotes
"Additional downside delta in EURUSD may look attractive based on: 1) the view that implied probability of a June liftoff could shift to 70-80% if we get better US data in the next few weeks (after forward guidance is weakened); 2) the large fixed income outflows from the eurozone, which we have been highlighting; and 3) a pronounced technical breakdown."
"In that scenario, a quick move to the 1.02-1.04 area is possible, and we are looking at strategies to leverage such a view, but have been missing decent entry points so far."