Forex Insider Daily Update 7 July 2017

Major Bank Daily Position

AUD/JPY - Citi - SHORT Position - From 86.25 - Adjusted - Stop from 87.25 to 86.25, Target: unch. (TOTW-S/T)

AUD/USD - Morgan Stanley - SHORT Limit Order - Placed - Entry: 0.7650, Target: 0.7200, Stop: 0.7740 (S/T)

AUD/JPY - Citi - SHORT Position - From 86.25 - Closed at 86.25 (TOTW-S/T) ±0 pips

EUR/USD - UOB - LONG Limit Order - Placed - Entry: 1.1411, Target: 1.1700, Stop: 1.1325 (S/T)

EUR/USD - UOB - LONG Limit Order - Filled - Entry: 1.1411 - Target: 1.1700, Stop: 1.1325 (S/T)

Barclays

We had long expected the BoE’s MPC members to support the currency by means of an eventual disagreement on the course of monetary policy amid high inflation forecasts and in our view, BOE is largely defending the credibility of GBP as a store of value amid losses both in foreign exchange and in domestic purchasing power.

Strategy wise, Barclays recommends fading recent GBP strength tactically on the grounds that political uncertainity likely to remains elevated in the near-term.

“However, as political uncertainity still weighs on GBP, we continue to see downside risks as a result in the short run.”

NAB

NAB remains comfortable with its view for higher EUR/USD on the back of the solid and increasingly broad economic recovery in the EuroZone, against a shifting dynamics in the US.

Speculative positioning is long but now slipping back and the USD, having dropped below its Trump 9 November rally start levels and now awaiting data that will either prove Fed’s inflation and economic growth optimism correct or not.

BofAML

USD/JPY : another leg higher in USD/JPY in 2017.

“We continue to view the USD/JPY is in a medium term bull market. We will be more concerned about currency diplomacy if USD/JPY rallies decisively beyond 120. We would buy dips on the USD/JPY into 120, and sell the strength above the level.