EUR/USD had already surpassed the 1.1700 level but retreated a bit. What’s next?
Here is their view, courtesy of eFXdata:
CIBC Research discusses EUR/USD outlook and adopts a bullish bias over the medium-to-long term.
Looking beyond interest-sensitive capital flows, remember that the euro is also buttressed by an attractive Eurozone current account surplus that is expected to remain well above 3% of GDP.
A combination of ongoing capital flows, reduced political risk dynamics, still above-trend growth and the potential for earlier than expected central bank action in 2019 point towards medium run EUR gains.
Our end of 2019 target of 1.28 may seem like a reach, but it’s actually only a bit above the average level seen since the global financial crisis,” CIBC argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.