Flash: EUR/USD set for higher targets even if debatable - RBS

FXstreet.com (Barcelona) - As Greg Gibbs, FX Strategist at RBS, notes, the taper chatter has been less positive for the USD against other majors, than many may have expected.

Key Quotes

"The low rate guidance of the Fed is working well to anchor front end yields in the US and prevent a rapid rise in the USD. The prospect of taper in the last month or so encouraged broad long positions in the USD, and capital to retreat from EM."

"Long positions against other majors may be in the process of being squeezed out. As such it is possible that we continue to see a further rise in EUR and GBP even if it is debatable whether this should last."