This might be the euro opportunity Credit Suisse was looking for

Credit Suisse advised clients to buy dips ahead of tomorrow’s ECB meeting in a note today.

They say a near-term base has been established and that any dip in the euro following the ECB is likely to be temporary.

There is debate about whether the euro will rise or fall on a rate cut. The normal playbook is for a currency to fall on lower rates but in this case it could be viewed as stimulative for growth and help the euro. On the other hand, it could point to further measures in the future.

I suspect the knee-jerk will be lower on a cut and that will be the buying opportunity.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

3 Comments

  1. Hmmmm if the Euro closes below 1.3100 by weeks end I really don’t see the benefit of going long. I guess we’ll have to wait for Big Ben and Super Mario to start blabbering.

  2. I don.t know but or sell???

  3. I don.t know buy or sell???

    please some one tell us

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