BBH - Potential for a short-covering corrective rally in the euro
Thu, May 17 2012, 13:26 CET | Interbank Talk
source: BBH
" With fresh Greek elections nearly a month away, there may be potential for a short-covering corrective rally in the euro. At this point, much of the bad news has been discounted and given the sharp swings in price action that have taken place recently, it will be difficult to sustain this downward momentum without a new impetus. This backdrop would favor selling the dollar against the dollar bloc and Scandis as well. However, the crisis in the euro zone is still likely to get worse before it gets better and so any pause in the selling pressure is likely to be temporary. The euro is trading just shy of a 4-month low, with near-term support near $1.2680. Resistance lies near $1.2800." BBH Global Currency Strategy Team.
Thu, May 17 2012, 13:26 CET | Interbank Talk
source: BBH
" With fresh Greek elections nearly a month away, there may be potential for a short-covering corrective rally in the euro. At this point, much of the bad news has been discounted and given the sharp swings in price action that have taken place recently, it will be difficult to sustain this downward momentum without a new impetus. This backdrop would favor selling the dollar against the dollar bloc and Scandis as well. However, the crisis in the euro zone is still likely to get worse before it gets better and so any pause in the selling pressure is likely to be temporary. The euro is trading just shy of a 4-month low, with near-term support near $1.2680. Resistance lies near $1.2800." BBH Global Currency Strategy Team.