The euro is looking for a new direction amid trade headlines and after the dust settled from the central bank decisions.
Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research discusses EUR outlook and flags a scope for additional position squaring related upside in the near-term.
“EUR has been rebounding from multi-month lows. Both stabilizing sentiments as related to China as well as the most recent ECB research making a case of accelerating wage growth to the benefit of domestic price pressure has been driving the latest development.
With speculative oriented investors still holding on to a sizeable EUR short position, additional position squaring related upside risk seems likely,” CACIB argues.
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