Selling EUR/AUD: A Top Structural Trade For 2014 - Credit Agricole

From efxnews.com

In 2014, Credit Agricole expects the AUD to start bottoming out, in particular against the EUR. CA's rationale behind this view is as follows. "Going forward, we expect US yields to remain well supported by US growth prospects improving further and therefore Fed monetary policy expectations adjusting higher. However, we do not expect the damage to the AUD from higher US yields to be too great," CA argues. "The EUR, in contrast, is unlikely to appreciate further from current levels. First of all, the ECB is unlikely to turn less dovish, as structural issues will keep growth prospects muted, irrespective of improving ... (full story)