EUR: Additional Position Squaring Related Upside Risk Likely N-Term – Credit Agricole

The euro is looking for a new direction amid trade headlines and after the dust settled from the central bank decisions.

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research discusses EUR outlook and flags a scope for additional position squaring related upside in the near-term.

“EUR has been rebounding from multi-month lows. Both stabilizing sentiments as related to China as well as the most recent ECB research making a case of accelerating wage growth to the benefit of domestic price pressure has been driving the latest development.

With speculative oriented investors still holding on to a sizeable EUR short position, additional position squaring related upside risk seems likely,” CACIB argues.

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