Barclays send out their week-opening trade recommendation, pointing out its valid from Wellington open Monday to New York close Friday
For the week ahead, its a short EURJPY
The bank cite:
- While we believe EUR strength in recent months reflects reduced institutional risks, resumption in market concerns about the stability of EU institutions or fresh country risks for Germany and Italy portend EUR downside.
- We prefer to express this EUR short versus JPY as the due to the strength of Japan's economy and JPY undervaluation.
- Moreover, demand for JPY as a hedge against unspecified risks has picked up after the equity rout earlier this month.
entry 131.32
- take-profit 128.58
- stop-loss 132.69
