- Morgan Stanley exits Bund-Future long as ECB bets look overblown and take profits on long EUR duration position before ECB's policy meeting on Thursday, says market may have moved too far in pricing in further ECB accommodation as valuations become increasingly demanding, and state that outright QE remains a remote possibility in the short term as it is too early to expect any fresh action at Sept. meeting.
- Barclays say there is an increasing chance the ECB will ease monetary policy further with full blown QE becoming more likely, as such Co. recommends staying in European equities as they are set to benefit from QE.
- Analysts at Credit Agricole say stretched short-positioning and overly aggressive ECB easing expectations may support EUR/USD bounce to 1.33 to reinstate short positions on EUR//USD. They suggest looking for any correction to above 1.33 to reinstate short positions on EUR/USD.
02 Sep 2014 - 07:50 - Equities - Source: RANsquawk
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