EUR/USD: Is 1.25 The New 1.20 For ECB? – Nordea

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EUR/USD enjoyed the weakness of the US dollar and surged to 1.23, where it took a break. What’s next? What levels are tolerable for the ECB? Here is the view Nordea:

Here is their view, courtesy of eFXnews:

Nordea FX Strategy Research discusses EUR/USD outlook, and notes that the pair has broken above its 2017 high and is now again markedly stronger than the ECB anticipated.

“For how long will ECB accept that, if EUR/USD is not helped lower by other factors?…On a monthly chart, 1.23 and 1.26 are the next more important levels, representing sloping resistances since 2008.

The last time ECB officials voiced concern about the strong EUR was in August and September in the wake of a 7-9% stronger EUR compared to the staff projection assumptions by the ECB.

So far EUR/USD is roughly 4% stronger than anticipated in the staff projections for the December meeting. Maybe 1.25 will prove to be the new 1.20 (the level where ECB intervenes verbally),” Nordea argues.

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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 the 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.

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