The euro seems range bound and sterling is sensitive to Brexit woes. What’s next? Here are the views from SocGen:
Here is their view, courtesy of eFXnews:
EUR/USD has been left out of the party as politics keep the market nervous and in particularly keeps Bund yields firmly anchored (under 20bp). With the latest French opinion polls suggesting that Marine Le Pen and Emmanuel Macron are pulling ahead of the pack, and with European data remaining reasonably upbeat there isn’t an obvious catalyst for any further downside to either EUR/USD or Bund yields right now, but politics will remain a source of nervousness all the way to early May.
Sterling’s having another ‘more sellers than buyers’ dip to start the week, unless it’s the collapse of another M&A deal in which the target was a UK firm which is doling the damage. PMI data on Wednesday are likely to be robust and We’d rather sell GBP/USD closure to 1.28 than engage down here.
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