Latest Forex Research

We Stay Short EUR/USD

Morgan Stanley is out with a note reiterating its structural bullish USD views

Considering the shifts in the global bond market (US 10‐year sub 2.40%, the German 10yr at 1.05%, global 10yrs all lower and

As in the Dollar, the Euro was short term technically overdone and in need of some technical corrective action.

With the Swiss managing to reach a fresh new high for the week this morning and

A fresh higher high overnight in the Yen suggests some lift from a combination of renewed safe haven interest in the Yen and

A slight retrenchment in the Dollar this morning is to be expected after the upside extension early in the week.

The trade expects the payroll readings later this morning to post a gain of 20,000 jobs and

A fresh downside breakout in the Pound and the lowest trade since mid-June would seem to leave the bear camp in

EUR/USD is holding the low implied byWednesday’s hammer. Coupled with theproximity of the key support at 1.3296, a shorttermrebound is likely.

Today’s highlights: USDJPY risk is seen lower towards 101.32, followed by 101.09/07.

Following the sharp drop of 3.0% m/m in May, manufacturing production rose by 1.0% m/m in June.

In FX, flows into safe haven drove USDJPY to a low of 101.60 before rebounding 101.80.