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8 Jul 2013
Flash: EUR/USD next target at 1.2680-1.2750 - BBH
FXstreet.com (Barcelona) - Fundamental and technical considerations are aligned in favor of the US dollar, notes Marc Chandler, Global Head of Currency Strategy at BBH.
As Chandler argues, "the latest economic data, including Friday's +195k jobs report, is strengthening the market's conviction that the Fed will begin tapering its long-term asset purchases later this year and raise the Fed funds target by the end of next year."
The incentives for unwinding the structural short-dollar trade remains intact, Chandler said. Technically, Chandler believes that a correction towards $1.2850 and perhaps $1.2900 in EUR/USD may offer fresh selling opportunities. Chandler sees next target at $1.2680-$1.2750 area.
As Chandler argues, "the latest economic data, including Friday's +195k jobs report, is strengthening the market's conviction that the Fed will begin tapering its long-term asset purchases later this year and raise the Fed funds target by the end of next year."
The incentives for unwinding the structural short-dollar trade remains intact, Chandler said. Technically, Chandler believes that a correction towards $1.2850 and perhaps $1.2900 in EUR/USD may offer fresh selling opportunities. Chandler sees next target at $1.2680-$1.2750 area.