EUR/USD: Still seems to be the currency of choice amid ECB easing talks – Goldman Sachs

Dhwani Mehta FXStreet

The Goldman Sachs strategists offer their bullish view on the Euro against the greenback despite ECB’s further easing calls.

Key Quotes:

"Despite the increasing probability of further ECB easing in July it "still seems to be the currency of choice".

Has seen short covering supporting it.

Expect this to continue in the near term, providing further supporting.

Systematic traders using simple momentum approaches likely to buy given it broke above its 200-day MA.

Expect to see more USD unwinding vs. other recurrences as well as against EUR."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.