Credit Agricole: US NFP data to direct euro’s short-term trend - eFXnews

By FXstreet.com | Updated August 01, 2014 AAA

FXStreet (Łódź) - The eFXnews team comment that Credit Agricole expects the EUR to correct higher today if US NFP numbers for July fail to surprise considerably to the upside.



Key quotes



"EUR’s muted reaction to weaker than expected Eurozone July inflation indicates the currency may have reached oversold territory."



"Investors’ expectations for a constructive payrolls reading have been rising on the back of the most recent better than expected growth data."



"However, given high expectations it will be difficult to drive US short-term rates higher unless data surprises considerably higher."



"As a result to the above outlined conditions we argue against selling EUR/USD around the current levels. From a broader angle, however, rallies may still prove a sell."



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