EUR/USD: Going against the near-term momentum - BTMU
BTMU on the euro
BTMU Research discusses EUR/USD, and USD/JPY outlook for the coming week, and takes a bearish bias on the 2 pairs in the near-term targeting moves towards 1.1900 in EUR/USD and 1110 in USD/JPY.
"We are always wary of going against the momentum over a very short time frame but we certainly believe there are grounds for EUR/USD correcting a little lower after a notable move higher since the turn of the year. We are fully on board with this move over the medium term but see scope for a correction," BTMU argues.
" USDJPY topside seems quite heavy because of market expectations for BoJ to decrease JGB purchase....If market expectations of yield normalization grow further after the BoJ and ECB meetings, USDJPY will likely be capped by seasonal revenue repatriation and export flows. The US dollar strengthening is not expected at this stage," BTMU adds.
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