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10 Mar 2014
Flash: EUR/USD & GBP/USD upside ahead - RBS
FXStreet (Barcelona) - Paul Robson, Senior FX Strategist at RBS sees further upside for EUR/USD and GBP/USD.
Key Quotes
“European currencies are favoured over Asia FX as investors chase risk-adjusted carry returns in a vol crushed world. We believe GBP/JPY has upside on the 'winners and losers in the Race Not to Tighten First' theme.”
“USD/CAD to trade lower initially as spot catches up with rate spreads. However, the medium-term outlook is still one of likely appreciation on ultimately higher US yields and a USD-supportive US energy story.”
“Tactically, we like AUD and NZD longs, as data support both currencies. For choice, we favour AUD over NZD. NOK outperformance against the SEK and JPY is also likely as the Norwegian currency trades more in line with its traditional drivers. Technical indicators are turning in favour of USD/JPY topside.”
Key Quotes
“European currencies are favoured over Asia FX as investors chase risk-adjusted carry returns in a vol crushed world. We believe GBP/JPY has upside on the 'winners and losers in the Race Not to Tighten First' theme.”
“USD/CAD to trade lower initially as spot catches up with rate spreads. However, the medium-term outlook is still one of likely appreciation on ultimately higher US yields and a USD-supportive US energy story.”
“Tactically, we like AUD and NZD longs, as data support both currencies. For choice, we favour AUD over NZD. NOK outperformance against the SEK and JPY is also likely as the Norwegian currency trades more in line with its traditional drivers. Technical indicators are turning in favour of USD/JPY topside.”