Home 3 Reasons Why Selling EUR/USD Still Attractive – RBS

3 Reasons Why Selling EUR/USD Still Attractive – RBS

EUR/USD has  gained quite a lot since it hit the lows of 1.0460 and even made a flash move above 1.10. However, not all are convinced that the move is real.

The team at RBS lists 3 reason to continue selling EUR/USD.

Here is their view, courtesy of eFXnews:

Selling EUR/USD is still among the  favorite trades for RBS on the ground of the following 3 reasons:

1- The Fed still sees itself on pace to raise interest rates at some point this year and normalize conditions slowly over the next several years,” RBS argues.

2- “At the same time, there may be evidence of a creeping USD shortage as cross-currency basis swaps have moved wider. The wider basis is generating higher effective offshore USD interest rates which may tend to boost the USD exchange rate,” RBS notes.

3-“Furthermore, EUR cash rates have crept to new depths below zero. This is likely to contribute to downward pressure on the EUR, in our view,” RBS adds.

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EUR USD technical analysis March 23 26 2015 fundamental outlook euro dollar sentiment for currency trading forex

Yohay Elam

Yohay Elam

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 a 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.