“We are now officially entering into a strategic EUR/USD long” with Tuesday’s break above
1.1000 amid broad-based euro-area recovery and expectation that ECB will alter forward
guidance at June meeting, CIBC strategists Bipan Rai and Jeremy Stretch write in note.
* 1Q euro-zone GDP confirms recovery is widespread as five
largest economies gained for third straight quarter
* ECB likely to modify forward guidance in June and will
probably announce changes to its asset-purchase program in
September; ECB seen raising deposit rate before end of 1Q 2018
** Risk to view is lack of wage growth in euro-zone but this is
expected to reverse as unemployment heads lower and growth is
likely to be above-trend in coming quarters
* Go long EUR/USD at market, targeting 1.1800; stop loss at
1.0720
* CIBC is also strategically long EUR/GBP, targeting 0.8850
Source: Bloomberg Pro Terminal
Senan Fuchedzhiev - Trader
Read more:
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.