Mon, Mar 07 2011, 01:43 GMT FXstreet.com
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FXstreet.com (Barcelona) - Following Trichet's hawkish stance late last week, signaling the readiness by the ECB to start hiking rates in the coming months, the Euro was given a significant boost which may potentially see a few of its rivals under the threat of mid term broad-based losses.
In this context, Chris Turner, Head of FX Strategy at ING Commercial Bank explained his bullish bias on the shared currency in an interview at Reuters Insider: “We think it can push up to 1.42 next week and we revise up our short-term targets, maybe for the next one to three months up to something like 1.45 and we retain our end-year target up at 1.48”.
However, according to Chris, “the better way to play Euro strength is against the Japanese Yen. We know, for example, that Japan is still suffering deflation. Japanese policy rates can probably be near zero for the next two years. So there's not a risk of the Bank of Japan infusing any early tightening. We think Euro-Yen is ready for an upside breakout about above this 115 to 116 level and push up to 120 and that's one of our baseline cost”.
In this context, Chris Turner, Head of FX Strategy at ING Commercial Bank explained his bullish bias on the shared currency in an interview at Reuters Insider: “We think it can push up to 1.42 next week and we revise up our short-term targets, maybe for the next one to three months up to something like 1.45 and we retain our end-year target up at 1.48”.
However, according to Chris, “the better way to play Euro strength is against the Japanese Yen. We know, for example, that Japan is still suffering deflation. Japanese policy rates can probably be near zero for the next two years. So there's not a risk of the Bank of Japan infusing any early tightening. We think Euro-Yen is ready for an upside breakout about above this 115 to 116 level and push up to 120 and that's one of our baseline cost”.
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