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Friday saw Natwest Markets note that "the......>

EURO
EURO: Friday saw Natwest Markets note that "the EUR has struggled to shake-off
worries about Eurozone political cohesion. While our long-term analysis suggests
valuations are stretched to the downside, reversion will need a trigger. Our
short-term Rich/Cheap model suggests EUR/USD is currently too high. The reaction
to this week's German Constitutional Court (GCC) ruling highlights which side
investors' confirmation bias leans towards and how difficult it will be for
EUR/USD to rise in the near-term. We therefore close our long EUR/USD position.
At the same time, we enter a new short EUR position against a basket of European
crosses (SEK, NOK, GBP, PLN and CZK)."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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