EUR: Trading Where It Should But A Notch Cheap ; AUD: The Favorite Antipode – TD


The common currency and the Australian dollar are looking for a new direction. What’s next?

Here is their view, courtesy of eFXdata:

TD Research discusses its tactical views on EUR and AUD. TD is neutral on EUR and bullish on AUD in the near-term.

“Over the past three years, for instance, the price action (6m %) has closely mirrored the shift in growth expectations (52% correlation), and yet it has all but ignored front-end rate spreads. The upshot is that the EUR is mostly trading where it should, though it runs cheap to our global factor component. That explains about 40% of the EUR and puts it at 1.1475,” TD notes.

What’s your favorite antipode? The antipodes have been closely watched over the past few months for a host of reasons. The simplest is that AUD is one the world’s best barometers on growth and reflation – at least in the FX market,” TD adds.

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About Author

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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