BNP Paribas increased its short EUR exposure via a fresh short position in EUR/GBP.
“We initiated a short EURGBP trade recommendation at 0.8140, with the target set at 0.78 and the stop at 0.8265,” BNPP clarifies.
With GBP already lagging the recent rise in UK short term rates, BNPP believes the case for building GBP longs has become more compelling especially against the EUR.
Meanwhile, BNPP trailed the stop on its short EUR/CAD from late April (target 1.45) to 1.5110, locking in a return of around 1% for the trade.
