EUR/USD has certainly recovered from the lows seen on Friday. It it already time for a rise? This is the question Credit Agricole asks and provides a few good arguments for this. Here is their view, courtesy of eFXnews: While EUR/USD fell to a multi-year low last week on a further divergence in Fed-ECB monetary policy expectations, we see limited short-term downside from here. Our reasons for this non-consensus view are thus. First, the ECB is unlikely to make a case for additional policy action anytime soon with President Draghi already stressing latest measures may prove sufficient to return inflation to target. Second, we perceive room for FOMC members speaking this week to dampen tightening expectations in the wake of last Friday’s payrolls. Importantly, we note forward inflation expectations have fallen considerably in recent weeks despite improving growth thereby implicating the strengthening USD. Indeed Fed member Dudley already highlighted USD’s role in dampening inflation would be taken into consideration in achieving the FOMC’s two objectives. As such caution is warranted and we advise against selling EUR/USD. To the contrary, shorter-term traders may take elevated speculative short positioning as a que to position for an upside correction to 1.28 in coming weeks. For lots more FX trades from Credit Agricole and other major banks, sign up to eFXplus. The article is brought to you in partnership with eFXnews. 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Those Australian job gains were indeed too good to be Yohay Elam 8 years EUR/USD has certainly recovered from the lows seen on Friday. It it already time for a rise? This is the question Credit Agricole asks and provides a few good arguments for this. Here is their view, courtesy of eFXnews: While EUR/USD fell to a multi-year low last week on a further divergence in Fed-ECB monetary policy expectations, we see limited short-term downside from here. Our reasons for this non-consensus view are thus. First, the ECB is unlikely to make a case for additional policy action anytime soon with President Draghi already stressing latest measures may prove sufficient to return inflation… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.