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RBC Recommend Short EUR/CNH

FOREX

RBC’s trade of the week is short EUR/CNH.

  • They note that “the EUR/CNH cross rate has struggled to cling onto CNH7.35 in recent days amid the broad USD rally. Given the -0.62 correlation over the past month’s daily prices between EUR/CNH spot and the DXY Index, the revival of USD strength should continue to weigh on the former in the near-term. Look to trade the recent range in the cross back down to CNH7.28. “
  • They recommended entering at CNH7.3445, targeting a move to CNH7.2800, with a stop set at a daily close above CNH7.3600.
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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