FXstreet.com (Barcelona) - Positioning remains heavy in EUR amongst real money, suggesting very little expectation of a structural solution in the immediate future, and any return to volatile markets will likely affect global sentiment, which has been flagged throughout global policy meetings, according to Geoffrey Yu, analyst at UBS.
As such, "we stick to our current short- and medium-term forecasts in EURUSD, and especially await for the EUR to revert fully to funding status with the onset of more aggressive ECB policy," he said, "Overnight risk remained stable with EURUSD trading in a range of 1.2385-1.2406 and USDJPY 78.17-78.29."
His view for the day is the pair to remain neutral with near-term resistance at 1.2444 ahead of 1.2489, and support at 1.2252 ahead of 1.2134.
As such, "we stick to our current short- and medium-term forecasts in EURUSD, and especially await for the EUR to revert fully to funding status with the onset of more aggressive ECB policy," he said, "Overnight risk remained stable with EURUSD trading in a range of 1.2385-1.2406 and USDJPY 78.17-78.29."
His view for the day is the pair to remain neutral with near-term resistance at 1.2444 ahead of 1.2489, and support at 1.2252 ahead of 1.2134.
