FXStreet (Łódź) - The eFXnews team remark that Credit Agricole suggests EUR rallies continue to be a sell, for example against the USD or the AUD.
"Due to the falling attractiveness of EUR-denominated risk assets and potentially weaker external trade-related inflows, we see little scope for the capital flow situation to turn more positive in the short term."
"This in turn suggests that the single currency is becoming more sensitive to the prospects for monetary policy, which have been indicating a weaker currency since the start of the year."
"Elsewhere, speculative short positioning has risen to multi-year highs, suggesting that the EUR has become subject to heightened correction risk."
"However, additional real money outflows may compensate for any speculatively oriented profit-taking."
"From that angle we expect EUR rallies to remain a sell, for instance against the USD and the AUD."
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