Yeah, yeah, Jackson Hole … OK, get it over with. Like rippin’ off a band-aid, please do it quickly and lets get on with it.
I found some comments from banks that didn’t mention The Hole. Yay!
BNP:
- “While the minutes of the last FOMC and MPC meetings highlighted the risk of earlier policy tightening in the US and UK, the downward pressures on eurozone growth and inflation have increased pressure on the ECB to engage in QE.”
- Their view is for EUR/USD to 1.34 in a month and 1.33 in 3 months
Barclays:
- Still very bearish on the euro
- Have recently closed a short euro-yen position for a gain of 1.45%
Now short EUR/GBP
- at 0.8004, initial target 0.7755 (2012 low) stop at 0.8040
- GBP should benefit most versus the EUR from the G10’s fastest economic growth and greatest underpricing of short-dated interest rates
and EUR/USD
- at 1.3280, initial targets 1.2815, stop at downtrend from the May high, currently at 1.3438
- “USD rally looks set to continue as robust US growth shines amid a softening global economy and upside risks to the Fed’s policy path make it the best strategic long”
Meanwhile, on the yen … “JPY’s recent erratic movement reduces our conviction that EURJPY has similar downside to other EUR crosses”
