Credit Suisse Research discusses its tactical trading bias on EUR/USD and USD/JPY in the near-term.
"As far as trading is concerned, buying into $ dips in-line with momentum feels the correct play – there has been no bounce in EUR$ at all and this supply will likely intensify through the YTD lows. We would rather play this way than ﬁght what feels like a powerful theme in ﬂow-driven markets and in the current lack of visibility over the GC Repo/Funding situation into Q/end," CS notes.
"Still wary of the USD/JPY bear-trap but mindful that we need to lower entry levels. One of the $ pairs we are more comfortable fading in these conditions – imagine we will struggle to sustain a break above 108.00/50 once again," CS adds.