Home EUR/USD: Close To Fair Value; What’s Next? – Barclays

EUR/USD: Close To Fair Value; What’s Next? – Barclays

Euro/dollar is relatively stable at a somewhat higher ground. Has it reached a new balance? Here is the view from Barclays:

Here is their view, courtesy of eFXnews:

Barclays Capital FX Strategy Research discusses its EUR/USD outlook going into 2018, expecting  a flat profile around 1.17 level into Q1 of next year before breaking higher towards the 1.20 level in Q2.

“The EUR’s gains will likely remain supported by solid euro area growth, but much further gains are capped, as  the currency is close to fair value.

Starting in Q2 18, we expect EUR appreciation to renew  on the back of an announcement around sequencing of ECB tightening. The Italian election will likely result in a higher risk premium for the EUR in the near term, but we see the ‘Politics of Rage’ more as a medium-term risk for the euro area,” Barclays argues.

Barclays targets EUR/USD at 1.17, 1.19, and at 1.22 in Q1, Q2, and Q3 of 2018.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.