BNP Paribas recommends going short EUR/USD and GBP/JPY, buying EUR/GBP. Expects EUR/USD to break lower from recent trading range, and won't be helped by G20 consensus on banking regulation, given weakness of eurozone banks. Says Irish referendum on Lisbon could also weigh on EUR with opinion polls suggesting tight margin for yes campaign.Looks for decline to 1.3740, last 1.4324. For GBP/JPY, expects renewed downward pressure towards 140.00. Says JPY will be supported by speculators switching funding currencies from JPY to other low yielders; last 152.535. Says buy EUR/GBP due to weak UK banks, weak UK economy; pair at 0.8734.
Good News friends, this will hit my prediction on EUR/USD. Below EUR/USD 1.3900.
Monday, 7 September 2009
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