Everyone's bearish on EUR/USD
EUR/USD is trading in the $1.3200 area. The pair still hasn’t closed this week’s opening gap. Traders are quite bearish on euro as they expect the ECB to add monetary stimulus, and analysts point at the divergence between the policies of the European Central Bank.
Analysts at Barclays say that Draghi’s speech in Jackson Hole marked a turning point in ECB rhetoric as he said that the central bank was prepared to respond with all its “available” tools.
Analysts at BNP Paribas expect EUR/GBP to decline to 0.7600. Many banks, including BNP Paribas and Scotiabank, are predicting the single currency will trade at $1.30 at the end of the year. Analysts at Credit Agricole recommend selling any rally in EUR/USD above $1.3300 and also sell EUR/AUD on rallies.