Credit Agricole's trading tips for this week

One week after the Brexit vote, Credit Agricole shares its views regarding the opportunities on the forex for the week of 4 July. Note that today is a holiday in the US, so EUR/USD trading will probably be quite calm!

"The Brexit should make the overall perspective a bit somber, so we are adjusting our forex forecasts accordingly.

In the short term, a precarious calm could settle in, while the situation after the vote Brexit should remain broadly unchanged this summer. The UK data is likely to come signal the start of slowdown due to Brexit. That being said, unless there is an aggressive reversal that would cause the BoE to react, the GBP should not yet reach new lows. We cannot exclude a strong rebound either, but we doubt that the GBP will become more constructive.

So, we will look to sell GBP rebounds against the USD and EUR ahead of the BoE meeting on 14 July.

Apart from the Brexit theme, we believe that the legislative election in Australia and the meeting of the RBA this week could support the AUD.

The NFP and the minutes of the Fed this week will be key events for market sentiment and for the USD's prospects."