BNPP, SEB & Citi EURUSD Outlook


AtoZForex.com, Amsterdam - After yesterday’s UBS EURUSD sell comments, today we are looking at the EURUSD pair making its intraday low of 1.1150. Now the main question we as every other retail trader have is, what is the target for EURUSD?

SEB, Citi and BNPP EURUSD outlookAtoZForex got today’s daily FX report from major banks. Major banks’ such as BNP Paribas, SEB and Citi EURUSD outlook is negative. We have bearish bias on EURO. It is not such a surprise especially on a day when the S&P cuts Greece rating to "CCC".

Citi’s EURUSD sell reasoning

Citi bank has set up its reasoning why EURUSD sell is preferred at its current level.  The bank clearly outlined major two reasons which is expected to put EURO under pressure for the coming weeks.

#1 Positive retail sales

The bank commented that promising May retail sales from yesterday is like the missing piece of puzzle for the FED to confirm that weak Q1 data was just a weather related hick-up. This should give the FED further confidence in their operations.

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#2 Greece trouble is getting worse

According to the Citi bank analysts, despite all the so called confidence signals from Eurozone and the Greek leaders Greece is closer to default than they ever have been.  “The market doesn't quite believe it yet, but it doesn't bode well for getting a deal this month."

SEB – EURUSD below 1.1278 aims further down

Not like Citi SEB gave their technical outlook for EURUSD. The bank commented that “as long as the hourly pattern with lower highs remains in place (i.e. staying below 1.1278) we will hold a light downside bias.

BNP Paribas expects EURUSD to trade to new lows

BNP Paribas on the other hand was conservative about USD, commenting that relatively difficult Q2 figures weighted on USD and due to the upcoming FOMC meeting next week there may be some reluctance to rebuild long positions in the USD or short positions in front-end rates."

However overall BNP Paribas is positive on USD as they concluded their EURUSD expectations as “we continue expect EURUSD to trade to new lows as we move into Q3."

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