Westpac ‘high conviction trade’ added
Analysts at Westpac added a short EUR/USD trade ahead of the ECB decision.
They write in a note to clients:
"Last week’s two bearish signals out of three producing a sell on strength order that was filled at 1.0995 (stop at 1.1110). We are wary that Draghi will struggle to leapfrog expectations but any squeeze in EUR is likely to be short-lived – the FOMC statement a week later is likely to sound more hawkish noting that future meetings are "live’ and the risks are balanced."
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