The coronavirus has now spread to Europe. How does this affect the EUR/USD outlook?
Here is their view, courtesy of eFXdata:
ANZ Research discusses EUR/USD outlook and sees a scope for retesting 1.04 in the medium-term.
“We have downgraded our 2020 GDP forecasts for the euro area as COVID-19 related disruption will delay the anticipated recovery in global trade and Europe’s manufacturing sector. We now expect GDP to rise by 0.9% vs 1.1%,” ANZ notes.
“The euro has reached our pre-coronavirus Q1 target of 1.08 vs USD. Severely limited reflationary policy room leaves the risks to the single currency skewed to the downside. A re-test of the post-crisis lows at 1.04 is expected,” ANZ adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
