EUR/USD is trading close, but with a safe distance from 1.08. The ECB’s hawkish tilt and the Fed’s dovish hike helped. But can it go further?
Here is their view, courtesy of eFXnews:
This week’s main focus for the EUR traders will be on preliminary PMI releases for the month of March, at least when it comes to data, notes Credit Agricole CIB Research.
In that regard, CACIB expects business activity to continue improving at a healthy pace, but argues that such an outcome is unlikely to have any meaningful impact on ECB monetary policy expectations and/or the single currency.
on the positioning front, CACIB notes that as speculative-oriented investors remain short, additional position-squaring-related upside risks from the current levels cannot be excluded.
“Any rally in EUR/USD to 1.08 and above should, in our view, offer an attractive opportunity to short the pair anew,” CACIB advises.
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