BNP Paribas: bullish on USD
Strategists at BNP Paribas recommend staying short on EUR/USD with a target of $1.2640. They are also holding their GBP/USD shorts with a target of $1.5050. They expect the greenback to strengthen on the back of this week’s risk events.
“The employment report at the end of the week remains a key test, but numbers in line with our 175k estimate should keep tapering expectations on track and, as a result, support the dollar. Ahead of the Friday’s NFP, range trading should persist”, analysts say.
They expect the ECB President Mario Draghi to give some dovish messages on a Thursday meeting. The new BoE head Marc Carney is very unlikely to push a new round of QE in his first meeting.