| FX Alert – Euro |

EUR-USD faces two-way risks, but lower in Q1-2013

14 December 2012 11:15 GMT Callum Henderson , David Semmens , Ned Rumpeltin , Sarah Hewin

  • We think recent EUR-USD gains have been driven mostly by risk appetite rather than fundamentals • Two-way risks will dominate in the next few weeks on competing fundamental factors • We think cyclical divergence should see renewed EUR-USD weakness in Q1-2013 • Leveraged funds: We recommend positioning for renewed EUR-USD weakness via option strategies • Real-money funds: We recommend remaining Underweight EUR in the short term, Neutral into H2-2013
^ top

Related Tags

Author: Callum Henderson , David Semmens , Ned Rumpeltin , Sarah Hewin

Region: Europe > EU , Americas > US

FX: Currencies > EUR , Currencies > USD

Publication Name: FX Alert

New User

Find out more about our research

Straight2Bank User

Please access our research via your Straight2Bank account