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Fed diversion trades in focus

Stephen Gallo from BMO Capital Markets says the recent events in China and on the markets don’t negate the need for tighter economy policy, he therefore likes EUR/GBP lower and AUD/NZD higher. He says 73.50-74 on EUR/GBP is a ‘good place to sell’ on the basis of ECB QE and a 2016 BOE rate hike. He likes Aussie Kiwi higher because we will see further diversions between the RBA and RBNZ.

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