Home EUR/USD: On A Firmer Footing; Likely To Test The Top Of 1.08-1.12 Range N-Term – MUFG
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EUR/USD: On A Firmer Footing; Likely To Test The Top Of 1.08-1.12 Range N-Term – MUFG

The EU has announced a recovery fund in order to deal with the financial meltdown. What is the outlook for the euro, particularly the EUR/USD?

Here is their view, courtesy of eFXdata:

MUFG Research adopts  a constructive bias on EUR/USD in the near-term.

“The European Commission’s proposal for the Recovery Fund has reinforced investor confidence in euro-zone assets and the euro…In the interim it increases pressure on the ECB to deliver further support,” MUFG notes.

“In these circumstances,  we expect the EUR to continue trading on a firmer footing in the near-term. EUR/USD appears set to test the top of the 1.0800 to 1.1200 trading range. However, it may still be premature to turn outright USD bearish,” MUFG adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.