MUFG trade of the week: Sell EUR/USD


Weekly FX pick from Mitsubishi

EUR/USD

EUR/USD is down 43 pips to 1.1943 today and MUFG expects it to fall further in the next week. They suggest selling the pair at spot with a target of 1.1700 and a stop at 1.2080.

“The failure to advance above the 1.2000 level and the lurch lower today on higher UST yields we think signals scope for a further move to the downside for EUR/USD,” they note.

“We look set to break new highs on the 10-year yeld and this will continue to weigh mostly on the low-yielding G10 currencies like JPY, EUR, CHF and SEK,” MUFG adds.

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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