TD FX Strategy Research thinks the balance of risks favor some modest EUR/USD consolidation into Jackson Hole, especially noticing that it is likely that ECB President Draghi will not deliver any fresh news on monetary policy.
" This leaves the EUR vulnerable to a buy the rumor, sell the fact outcome. A few press releases this week also underscored the ECB’s modest discomfort with the strength of the EUR. This is slightly at odds with the minutes, which showed the ECB was comfortable with the current level of the exchange rate," TD adds.
"Still, positioning looks stretched near-term, and we look to use any dips as buying opportunities," TD advises.
Source: TD Securities ResearchOriginal Article
