FXstreet.com (Barcelona) - JP Morgan analysts observe a stealth rally by non-dollar currencies in a risky environment this August, which sent the greenback to breach below a 2-month floor and is helping the EUR/USD rebounding from July’s losses. ”Some of this move lower in the dollar and higher in most other currencies could be catch-up since the FX carry trade has lagged the credit carry trade all year”, wrote analyst John Normand, pointing also to an unattractive USD sell-off as ECB Draghi’s plan seems to vague and US nonfarm payrolls is the only decent data anywhere.
In anticipation of negative interest rates this fall, JP Morgan analysts limit USD risk to a long versus EUR (1.22-1.19 radio put spread).
In anticipation of negative interest rates this fall, JP Morgan analysts limit USD risk to a long versus EUR (1.22-1.19 radio put spread).
