Home EUR/USD: Rallies Likely Short-Lived As Long As Italy Risk Lingers – Credit Suisse
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EUR/USD: Rallies Likely Short-Lived As Long As Italy Risk Lingers – Credit Suisse

EUR/USD has been under pressure as the dust settled from the Mid-Terms and after the Fed remained optimistic. What’s next?

Here is their view, courtesy of eFXdata:

Credit Suisse discusses EUR/USD outlook and maintains a bearish outlook for a test of 1.13 over the coming weeks.

The next key events on the calendar are the deadline for Italy to submit a revised proposal to the EU Commission by 13 November,  and for the EU Commission to produce a final assessment on all member countries budgets by 30 November. As things stand, Italian officials have signaled willingness to negotiate with EU authorities, but are still ruling out meaningful changes to the budget.  As long as the prospect for conflict remains alive, we think any attempts by the EUR to rally should be short-lived,” CS argues.

For EUR to resume its downward trend, however, we think markets would need to see a more significant challenge to the current set of expectations. The ongoing sharp weakness in Italian data suggests this moment could come sooner rather than later,” CS adds.

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Yohay Elam

Yohay Elam

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 a 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.