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5 Jul 2013
Flash: Spot desk comments on Central Banks – BMO
FXstreet.com (London) - Stephen Gallo at BMO wrote that the spot desk said yesterday’s comments from the aftermath of the BoE and the ECB give them a very clear view going forward.
They said this as we edge closer to the NFP release today. “As long as the number doesn’t shock to the downside we will see renewed selling of GBP and the EUR especially in the days/weeks ahead, not only against the USD but also against AUD, CAD and NZD and probably they are the better play going into the number rather than a straight USD position. USD/CAD remains generally underpinned but there is some wood to chop to get through the 1.0550-1.0600 area, and above there we will see barriers come into play. I will still use dips to buy into USD/CAD.”
They said this as we edge closer to the NFP release today. “As long as the number doesn’t shock to the downside we will see renewed selling of GBP and the EUR especially in the days/weeks ahead, not only against the USD but also against AUD, CAD and NZD and probably they are the better play going into the number rather than a straight USD position. USD/CAD remains generally underpinned but there is some wood to chop to get through the 1.0550-1.0600 area, and above there we will see barriers come into play. I will still use dips to buy into USD/CAD.”