Credit Agricole estimated G10 currency performance concerning post CNY devaluation movement, and they found that EUR is the best performer:
- "It appears that the latest development decreased expectations of the Fed considering higher rates as soon as in September. However, it appears premature to make such assumptions, especially as US inflation expectations have been well supported on the back of firm domestic activity."
- "The successful completion of the Greek bailout negotiations seems to have helped it outperform the likes of USD, JPY, GBP and especially CHF."
- "The EUR-resilience went hand in hand with steep losses in the Eurozone stock markets. In turn this may suggest that (foreign) investors cutting their longs in the EZ asset markets also cut their EUR-shorts on the hedge."
On the technical view - the EUR/USD broke 100-SMA and 200-SMA on Monday for intra-day H4 chart to be in bullish condition for now, and CNY devaluation together with completion of the Greek bailout negotiations made the case.
