Barclays Trades Of The Week: Sell EUR/USD & Buy USD/CHF

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The highly anticipated meeting of the ECB means a lot for the euro, but also for the Swiss franc.

Here are Barclays’ traders of the week, with clear directions:

Here is their view, courtesy of eFXnews:

Currency investors should consider selling EUR/USD and buying USD/CHF this week, advises Barclays Capital in its weekly FX pick to clients. The trades are macro-technical driven and are in line with Barclays’ positions in its strategic portfolio. 

EURUSD versus EU US real interest rate differentials

On the macro-front, Barclays’ rationale is as follows:

“We expect the ECB to deliver a stimulatory policy package including a time extension of QE and a 10bp deposit rate cut. Given how much is already priced in, we see a risk that the ECB surprises market expectations to the upside; therefore, we remain short EURUSD.

Moreover, given the pressure that additional ECB easing will add on the SNB, we recommend staying long USDCHF spot,” Barclays advises.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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