The USD continues to struggle to regain momentum, notes BNP Paribas.
"US front-end yields have remained stuck near the very low levels reached during the peak of risk aversion last week despite an upside surprise on US September existing home sales, depriving the USD of a catalyst for recovery," BNPP adds.
How to position?
1- "We remain constructive on the USD but accept that it may take time to repair the damage of the past two weeks and would be careful of trading the USD from the long side just now," BNPP advises.
2- "We remain more constructive on short EUR-cross positions, with Tuesday's Reuters report suggesting the ECB could be moving towards broadening its asset purchase program, notwithstanding ECB denials, likely to encourage use of the EUR as a funder as the risk environment stabilizes," BNPP adds.
Varchev Finance
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.