EUR/USD moved higher despite some data that should have brought it down. Amid these signs of strength, what’s next?
Here is their view, courtesy of eFXdata:
TD Research discusses the market’s conditions into year-end and flags a scope for some action left into year-end.
“Markets are heading into the home stretch, looking like they have already shifted into holiday mode. We could still get some fireworks before yearend, as four major central banks meet this week.
We doubt that investors will look for the hero trade into yearend, which in turn probably caps the ranges. Indeed, liquidity, valuation and positioning arguably all matter more the next 10 days, though we think this week’s Fed meeting could shape the contours of the FX market to start 2019,†TD notes.
“EUR has consolidated off the lows and the next key level to watch is 1.1450. The BoE is a sideshow compared to Brexit headlines, although GBPUSD should be trading north of 1.27. Against this week’s risk events, GBPSEK upside looks attractive and we remain USDJPY sellers at 114,†TD adds.
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