jeudi 7 mai 2015
EUR/USD Bear Trade? Easy money is in the past. Many yet unable to face it, jucy meat for bulls.
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NO Rush To Jump back unto EUR/USD Bear Trade
Assign whatever reason you'd like for the ongoing European asset rout, but the fallout is going to change the nature of the EUR bear trade for the foreseeable future.
QE will go on but there's a lot of money now trapped at higher prices that is sure to dampen investors' enthusiasm for Euro stocks and bonds, and the torrential inflow seen in Q1 is unlikely to be repeated any time soon.
Likewise for the relentless supply from hedgers in the currency.
Fundamentals still, on balance, favor a lower EUR but the easy part of that trade is in the past.
With monetary 'policy divergence' now less distinct as the US economy slows and uncertainties over Brexit and Grexit in play, EURUSD will be a more difficult play now than was the case over the past year
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