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Wednesday 1 February 2017

TDS sell the euro and the pound

Bank analysts at TDS have updated their forecasts and are now waiting for a raise in US interest rates twice this year and three times next year. The meeting of the FOMC on Wednesday will not be particularly interesting. In the first half of this week the trade likely will be in a range and from the bank prefer to buy the dollar on dips.
Yesterday's data on inflation in the eurozone showed significant growth, but the bank doubt that this will lead to an increase in nominal yields of European bonds (if this happens, then the real rate of return remains the main driver of the decline in EUR/USD). Acoording to TDS' analysts, it looks attractive to sell EUR/USD around 1.07 dollars.
As for the pound, political events may cause its further strengthening, but in the opinion of the bank, most of the news already have been calculated in prices, so analysts advise to sell in growth.

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