EUR/USD: Tactical Profit-Taking; USD/JPY: Top Heavy – Barclays

Barclays Capital Research sees scope for near-term EUR/USD depreciation as investors take profit on long EUR positions ahead of the June ECB meeting and the recent USD sell-off dissipates.

“The ECB seems to be indicating only a very slow change to its guidance in June as most members are concerned about a bond market tantrum. Rates markets appear to have re-priced to reflect those expectations, with EURUSD lagging the move,” Barclays argues.

Barclays continues to forecast EUR/USD at 1.09 by quarter-end.

Turning to USD/JPY, Barclays notes that the the pair remains top heavy, weighed by slowing global economic momentum and Trump uncertainty.

“The pair should remain driven by global dynamics, including May sentiment indices globally and key US data,” Barclays adds.

Barclays continues to forecast USD/JPY at 112 by quarter-end.

EUR/USD is trading circa 1.1135, and USD/JPY circa 111.25 as of writing,

Source: Barclays Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/z2X_NejOTPc/eurusd-tactical-profit-taking-usdjpy-top-heavy-barclays

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