FXStreet (Barcelona) – According to Credit Agricole, EUR rallies remain a sell due to investors’ preference of using the currency for funding investment, and because of ECB’s QE, as noted by eFXnews.
Key Quotes
“Greece officially requested a three year bailout programme and committed to tax and pension reforms from next week. However, details will be outlined today and that suggests there remains room for disappointment. Nevertheless, we remain of the view that officials will find a compromise in order to prevent Greece’s exit from the Eurozone.”
“Although such an outcome would trigger EUR upside, we remain of the view that rallies should be sold. This is due to investors’ preference of using the single currency for funding investments in riskier assets such as equities and as the ECB is unlikely to turn less dovish anytime soon.”
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