Credit Agricole entered a short EUR/USD last Friday from 1.1385 targeting 1.0800, with a stop at
1.1680
From Credit Agricole:
"The USD failed to break higher on the back of yesterday's April FOMC minutes. It was stressed that many Fed officials thought the economy is unlikely strong enough for a June rate rise. However, last few weeks' weaker growth data already lowered investors' central bank rate expectations. As such the minutes did not provide anything new.
Looking ahead, we remain of the view that the Fed will consider higher rates as soon as September as incoming data is likely to confirm a trend of improving growth and price developments. As such we still like buying dips.
When it comes to the EUR we remain of the view that further downside is likely in the weeks to come. This is especially true as the ECB is unlikely to accept any unwarranted tightening of monetary conditions. From that angle the currency will remain in focus as an important driver of inflation expectations.
We remain short EUR/USD targeting a move to 1.08 over the coming few weeks."
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