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EUR/AUD


Ali Farhad
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We have seen the pair pull back somewhat since the massive rise up recently. And I do think the market needs to pull back a little.

However, the euro is now seen as a funding currency and being used as a risk off trade. I.e. when there is risk in the market then the euro will rise. Much like the Japanese yen. 

And because of this I believe that although we will see a pull back, we will see a continued move higher in the long term. One of the reasons why is because I see a sustained risk in the markets from the virus and I am questioning the feds decision to cut rates by 50bps which suggests a bigger risk to markets than just the virus.

So long term I see a move higher but short term we may see a pull back.

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