OctaFX | OctaFX Forex Broker
Open trading account

Stay short EURGBP into UK employment report - BNP Paribas

FXStreet (Bali) - BNP Paribas remains short EURGBP targeting a decline to 0.7000 ahead of the UK employment report at 9.30GMT.

Key Quotes

"The GBP has had a disappointing start to the week due to a soft CPI release but we do not think it makes sense to chase GBP lower from here."

"In contrast to consumer inflation, wages are telling a different story of building price pressures as we expect the 3m/3m ex-bonus measure of compensation to rise to 3.0% y/y, which would be the fastest pace since January 2009. We also see the unemployment rate at a new low of 5.4%."

"Despite our economists pushing back their expectation for BoE rate lift-off to May from February 2016, there is still plenty of scope for UK front rates to adjust higher in reaction to stronger data as the market does not price a full BoE hike until Q1 2017."

"STEER TM also signals that EURGBP currently appears overbought, with short-term fair value around 0.7100. Accordingly, we remain short EURGBP targeting a decline to 0.7000."

EUR/JPY advances to highs around 136.40

The Japanese yen is depreciating vs. its European counterpart on Wednesday, lifting EUR/JPY to the area of session tops around 136.40...
Read more Previous

EUR/USD forecast: focus on US retail sales – Commerzbank and Scotiabank

EUR/USD remains in the vicinity of 1.1400 the figure during the first half of the week, ahead of key releases in the US docket...
Read more Next
Start livechat