As the market continues to whipsaw around 1.3000 BNP has put out a long euro-usd trade recommendation at 1.3000 with a 1.3400 target and a stop below 1.2840.
Although they fully expect a 25bp rate cut next week by the ECB, they feel it is fully priced in now, with a long list of institutions calling for a cut following poor eurozone economic data this week. Among the positives for the euro is the relative equity performance indicator, and the idea that the market has become too complacent about the US economic recovery. Their own technical analysis suggests the double bottom at 1.2754 on 4 April will help underpin the euro.
Market News International