Barclays Advises Selling Euro on Potential LTRO Liquidity Shock Next Week
Saturday, 25 February 2012 | 00:00
Barclays Capital advised selling the euro against the dollar and the Norwegian krone as funds provided by the European Central Bank in next week’s three-year longer term refinancing operation weigh on the currency.
“The chances of the February LTRO being a liquidity supply shock are very large,” New York-based Aroop Chatterjee and London-based Raghav Subbarao, currency strategists at the bank, wrote in an investor report dated yesterday. “We would expect the euro to weaken against the dollar, as well as underperform risky currencies as financial conditions improve.”
The euro was little changed at $1.3373 at 6:57 a.m. London time after reaching $1.3380, its strongest level since Dec. 12. The 17-nation currency was also little changed at 7.5152 krone.
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