Sterling was the worst currency performer last week due to Brexit uncertainty and political challenges faced by Theresa May. The weakness was also caused by dollar strength. GBP/USD may challenge the psychological level at area around 1.3010 anytime soon but we expect strong reversal from that area thus buy the dips with target level at 1.3050, 1.3200 and 1.3450 in long term.
Euro recovered some losses against greenback last week but still vulnerable because of Catalonia’s vote for split from Spain. Investors will be focus on the speech by ECB Draghi on Thu whether will remain hawkish or raised concern about euro’s rise. Sell euro on rallies according to our view.
Meantime we remain our bearish view on AUD/USD with target level of 0.7732 and even 0.7675 in coming weeks. GBP/NZD was trading sideway recently but our long term view is still bullish with target 1.8800 before end of this month.
This week’s key economic events:
