EUR/GBP: Credit Suisse suggests selling pair could be best trade of the week

On the occasion of an analysis published today, Credit Suisse presents what it says is the best trading idea this week, namely selling the EUR/GBP:

"Draghi's dovish comments reiterated the EUR's bearish potential in our view. The euro was supported by the closure of short positions, given its new status as a funding currency, but positioning analysis suggests that these short position closures are already well advanced.

Moreover, weak emerging currencies have typically weighed down on the euro, via currency reserve managers who sell the EUR/USD to replenish their USD reserves, and this factor could begin to weigh down on the currency.

Meanwhile, we remain bullish on the GBP, and we expect a rebound in inflation expectations and a stable message from the BoE.

Ultimately, we find it attractive to sell the EUR/GBP at current prices."