EUR/USD: Can The EUR Rebound Continue? – Credit Agricole

EUR/USD has been gradually moving to the upside, getting close to 1.1700. Can it continue higher?

Here is their view, courtesy of eFXdata:

 Credit Agricole Research discusses EUR/USD outlook and thinks that EUR will remain generally more resilient than other G10 currencies in the face of growing threat of escalating trade conflict between the US and China.

“In particular, EUR should continue to benefit from evidence that the US and the EU have started moving closer to a trade deal and/or that the Italian government comes up with a budget proposal on 27 September that respects the EU rules.

In addition, EUR has benefited from the relatively positive ECB assessment of the Eurozone’s economic prospects that underpinned its outlook for gradual policy normalization in 2019,” CACIB argues.

“We remain positive on EUR/USD over the long term, expecting the Eurozone growth and inflation outlook to improve. Furthermore, EUR/USD remains below its long-term fair value implied by our model G10 VALFeX and PPP,” CACIB adds.

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