Flash: How to position for a vulnerable dollar? Buy 1-week EUR/USD 1.380 call - ANZ

FXstreet.com (Barcelona) - If the US government shutdown is not resolved near term, the impact on sentiment suggests risk of a sharp capitulation rally in EUR/USD, according to Richard Yetsenga and Brian Martin, FX Strategists at ANZ Research.

Key Quotes

"The risks around both the US political dynamic, and the market stubbornly holding onto bearish EUR/USD views, suggests to us that a sharp, capitulation rally in the EUR is a real one. To position for this possibility we recommend buying a 1 week EUR/USD 1.3800 call, at a cost of 10.5 ticks."