Investors should sell the euro against the yen, betting the 17-nation currency will extend losses after sliding to a 10-year low yesterday, according to Standard Bank Plc.
The bank recommends selling the euro at 104.90 yen with an initial target of 103.50 followed by 100.40, Steven Barrow, head of Group of 10 currency strategy, wrote today in a note to clients. Investors should exit the trade if the euro strengthens to 108.10 yen, he said.
“Our indicators of euro-yen remain weak and we will add a short position here,” London-based Barrow wrote in the note.
The common currency fell 0.5 percent to 105.10 yen at 11:09 a.m. in London, after sliding to 103.90 yesterday, the lowest level since June 2001. The euro has slumped 9.2 percent against the yen in the past three months.
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