3 Reasons To Sell EUR/AUD This Week - Citi
Currency investors following tactical strategies should consider selling EUR/AUD this week, advises Citi in its weekly FX pick to clients. Citi's rationale behind this call is as follows
1- "Carry could see stronger performance this week... Combined with China’s weekend easing this should be favorable for higher carry currencies such as AUD," Citi argues.
2- "Positioning may be conducive to AUD gains...Investors may be inclined to cover shorts on dips, which could skew risk-return in favor of gains moving forward," Citi clarifies.
3- "EUR should be an attractive vehicle for carry trades... Renewed drag from politics could leave EUR vulnerable to underperformance," Citi adds.