Search ForexCrunch

The euro is rising amid a better market mood but remains in a wait-and-see mode. Can it continue higher?

Here is their view, courtesy of eFXnews:

Barclays Capital Research discusses EUR/USD this week and thinks that  further risk reduction should continue to weigh on the pair.

“Investors seem most heavily positioned in growth-sensitive currencies, including the EUR funded with safe-haven currencies.  The sell-off in US equities has likely left European investors over-hedged on their EURUSD exposure, with the ones undertaking more active rebalancing having to buy the USD back. Moreover, German political risks remain, in our view,” Barclays argues.

“This week, ECB speakers are unlikely to provide new information on the likely path of ECB policy, in our view. On the data front, we expect German GDP growth (Wednesday) to stabilize at 0.7% q/q in Q4 17 and EA Q4 17 GDP to be confirmed at 0.6% q/q (both Wednesday),” Barclays adds.

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.