EUR/USD hit a high close to 1.1500. Can it break to higher ground?
Here is their view, courtesy of eFXdata:
TD discusses EUR/USD outlook after reaching the 1.1450 level which TD flagged earlier this week (see here).
“It is clear that US risks asset should continue to correct but what it is not clear is whether this stokes a real economy recession next year. The price action reflects the unwind of easy money and years of financing engineering, though the Fed’s not sure how soon (or much) this spills into the real economy. What’s clear to us, however, is that this backdrop reinforces the steady climb down in the broad USD,” TD notes.
As we noted yesterday, this backdrop sees the correlations flipping again and reveals new dynamics like the strength in JPY and EMFX noticed the past few sessions. The EUR has reached our short-term target of 1.145, which shifts the focus to a possible break of 1.15,” TD adds.
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