FXStreet (Łódź) - The eFXnews team point out that Credit Agricole believes any EUR rallies should be sold against the USD or the AUD.
"In line with market expectations the latest data confirmed still weak growth and price developments. From that angle there is little scope of the ECB turning less dovish anytime soon."
"Looking ahead, investors’ focus will shift to next week’s PMI releases."
"However, there appears to be little room of strongly improving business activity, in particular when it comes to the export-sensitive manufacturing sector."
"All of the above should keep both the risk asset and trade related capital flow situation out of favour of the single currency."
"While elevated speculative short positioning is keeping the EUR subject to correction risk, we remain of the view that any rallies should be sold against both the AUD and the USD."
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