2 Jun 2011
While having an underweight view on equities other asset classes are worth a look. In addition to credits, one of the more interesting to follow, in my opinion, is foreign exchange speculation.
EURUSD is currently trading below the option barrier around 1.45 after having enjoyed a revival over the past two weeks (circled), as the sentiment towards the Greek situation has improved. In my opinion, however, the peripheral EUR situation is still so vulnerable (Portugal avaiting a general election shortly isn’t exactly helping) that I expect a reversal of the past few week’s gain, down towards the 1.40 – 1.41 area (38.20 fibb level at 1.4144 and 100 dma at 1.4061).