FX view post ECB, pre Nonfarm Payrolls - RBS

FXStreet (Guatemala) - Analysts at RBS explained that they are more confident that the USD can outperform on a stronger than anticipated payroll report even after it failed to do so in April.

Key Quotes:

“The potential for large-scale changes to GPIF investment being rolled out in Japan makes long USD/JPY compelling on an outperformance”.

“The sharp reversal in EUR crosses after the ECB decision today suggests that the pain trade in EUR/USD is toward a higher EUR – weakness in US payrolls may add to the pain – a higher EUR on the crosses could be an attractive short-term position for those looking for an NFP underperformance, and with it USD weakness”.