Sell on rise - EUR/AUD, EUR/CAD & EUR/NZD – Westpac

Tim Riddell from Westpac believes EUR/AUD, EUR/CAD and EUR/NZD will be ideal shorts into any interim rebounds.

Rationale

The extending and effective easing of policy, together with greater flexibility, should, at a minimum, have placed a cap on any further EUR gains into the FOMC next week.

In a broader sense, this effective and extended easing may make EUR a funding currency of choice and so puts EUR-crosses in focus should the consolidation in USD persist. On that basis, EUR/AUD, EUR/CAD and especially EUR/NZD will be ideal shorts into any interim rebounds.