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Oct 12 - 05:00 PM
EUR/USD, USD/CAD, GBP/USD, AUD/NZD: Views Into Year-End - BofAML
First appeared on eFXplus on Oct 12 - 03:30 PM

Bank of America Merrill Lynch Research discusses its views into year-end on EUR/USD, GBP/USD, USD/CAD, and AUD/NZD:

EUR/USD: "We still see EUR/USD risks to the downside in the short term as Italian budget planning and trade wars provide uncertainty. That said, we believe the majority of USD gains are behind us and we are looking for an opportunity to go long the euro. ECB QE will end this year; the market will also start pricing slower US growth as the impact of the fiscal stimulus ends by the end of next year."

USD/CAD: "Canada agreed to join the US-Mexico trade agreement, thereby keeping a trilateral trade deal alive. The deal updates NAFTA, reduces uncertainty in the region and is supportive of investment and Canadian assets. We expect the USMCA to be signed by leaders of the three countries on Nov 30, with US Congress likely to act in 2019... Opposing dynamics support range-bound USD/CAD."

GBP/USD: "GBP remains caught in Brexit headlines for now, but we remain constructive on sterling over the medium-term as we expect a deal to be struck."

AUD/NZD: "We continue to believe AUD underperformance is close to its end, while NZD is likely to remain soft as long as RBNZ stays dovish."

Source:
BofA Merrill Lynch Research/Market Commentary

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