I'm targeting 80.00 here.
Essentially, we are going to reverse the bullish move made by the ending of QE in 2014 (not the rolling over of assets though).
This is a simple fundamental play, which can also be backed up by the heavy break of support at 91/92.
We should see the Euro push up further from here as dollar hedging costs have increased drastically, which can be seen by 3 month LIBOR rate increases over the past year or two.
This same phenomenon occurred before the financial crisis, where institutions looked at cheaper currencies to conduct swap activity with.
Essentially, we are going to reverse the bullish move made by the ending of QE in 2014 (not the rolling over of assets though).
This is a simple fundamental play, which can also be backed up by the heavy break of support at 91/92.
We should see the Euro push up further from here as dollar hedging costs have increased drastically, which can be seen by 3 month LIBOR rate increases over the past year or two.
This same phenomenon occurred before the financial crisis, where institutions looked at cheaper currencies to conduct swap activity with.
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Penafian
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FREE 100+ page bond trading guide! pro.fink.money/subscribe
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.