EUR/USD shorts risk a possible Greece deal

May 26, 2015

Kit Juckes of Societe Generale, notes that the wiser path for EUR bears is to protect against a possible deal between Greece and its creditors.

Key Quotes

“The twists and turns of the EUR/USD rate are far from over. Last week's CFTC positioning data showed a further fall in the EUR short on the IMM but not a huge fall, suggesting that only a part of the position has been cut in the correction.”

“RSIs have flipped from very overbought in EUR/USD two weeks ago to flirting with oversold positions already this morning. And the week has no helpful-looking data releases.”

“There's nothing out in the Euro area today and the economic data at the back end of the week (economic confidence, money supply) should be reasonably robust.”

“The US has mostly minor data until Friday (though a jump in new home sales today would be a tonic for the dollar) when a downward revision to Q1 GDP would make all the wrong kind of headlines.”

“Maybe the message is that if we are significantly lower in EUR/USD by the middle of the week, the wiser path is to protect against a deal being done to keep Greece afloat.”

“In the meantime, we like staying short EUR, GBP and CHF against NOK, SEK and PLN for the long term.” 

Publication source
OctaFX information  OctaFX reviews

October 27, 2016
Sterling falls notwithstanding UK GDP
On Thursday, the British pound sagged against the greenback, notwithstanding data on third quarter growth showing that Britain’s economy shrugged off the immediate shock of the Brexit referendum...
October 27, 2016
Dollar falters but strength remains ahead of jam-packed week
The US dollar has taken a bit of a breather this week as it consolidates its recent gains ahead of major economic data and events in coming days. For around a month, the greenback has been on an exceptionally sharp incline as expectations for a Federal Reserve rate hike this year have progressively increased...
October 27, 2016
Oil slides on OPEC uncertainty
WTI Crude received a pummelling on Tuesday with prices sinking below $49.50 after reports displayed an inflated rise in U.S inventories which revived concerns over the excessive oversupply in the markets...

FxPro Rating
HotForex Rating
Tickmill Rating
Orbex Rating
OANDA Rating
HYCM Rating

Anyoption Rating
OptionBit Rating
24option Rating
EZTrader Rating
Binary Brokerz Rating
TopOption Rating