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Forex Flash: EUR/east Asian crosses look appealing – Westpac

10/10/2012 11:01:00 AM
Referenced Stocks:FSI (Barcelona) - According to Research Analyst Jonathan Cavenagh at Westpac, "Overall, our Financial Stress Indices ( FSI ) paint a more upbeat picture of the economic outlook, particularly compared to some of the PMI readings within the Asian and European regions and the IMF growth downgrades earlier this week. "

In addition, "While our FSIs may not improve much further from here, if they can hold around current levels we will grow more confident of an improved growth outlook in the period ahead - given that this improvement may well be lead by the US, the best way to express this view may well be via short EUR/Asia positions." Cavenagh notes.

Finally, "From a risk/reward perspective short positions in EUR/IDR and EUR/MYR look the most appealing to us." he suggests.