FXstreet.com (Barcelona) - According to Christian Lawrence, Associate Director FX Strategy at Rabobank: "EUR/USD continues to grind downwards, printing at a new two year low of 1.2099 with the June 7th 2010 low of 1.1877 now in sight."
"1.20 is a big psychological level with option barriers a plenty and we would be surprised not to see a test of this," he added.
"EUR/JPY has printed at a 12 year low of 94.23 but comments from Japanese Finance Minister Azumi that he is closely watching currency moves and stands ready to act against speculative and excessive JPY moves were just seen as the regular jawboning and did little to halt the JPY rally," Lawrence explained.
His thoughts for the currencies in the short term are: "We expect USD and JPY to remain the currencies of choice at the expense of high beta names over the coming days."
"1.20 is a big psychological level with option barriers a plenty and we would be surprised not to see a test of this," he added.
"EUR/JPY has printed at a 12 year low of 94.23 but comments from Japanese Finance Minister Azumi that he is closely watching currency moves and stands ready to act against speculative and excessive JPY moves were just seen as the regular jawboning and did little to halt the JPY rally," Lawrence explained.
His thoughts for the currencies in the short term are: "We expect USD and JPY to remain the currencies of choice at the expense of high beta names over the coming days."
