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EUR/USD Ripe For Near-term Dip

Published 01/08/2018, 07:03 AM
EUR/USD
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USD/JPY
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EUR/GBP
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EUR/NOK
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EUR/SEK
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EUR/NOK - with year-end NOK headwinds fading, we like to sell the cross on valuation, real rates, relative growth, and oil prices.

EUR/SEK - we prefer a cautious stance and still think house prices and too aggressive RB pricing limits downside potential.

EUR/USD - position for a dip within the 1.16-1.21 range near term as euro optimism (incl. ECB) priced too aggressively.

USD/JPY - supported by higher US yields and risk appetite, but expect 111.65-114.55 range to hold. Look to sell on rallies towards 114 amid stretched positioning.

EUR/GBP - 0.8650-0.90 range to hold near-term, as we think it is too early to reprice Brexit risks significantly.

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