Has the euro rally reached its limits? Two opinions

EUR/USD temporarily topped 1.23 but retreated as ECB Vice President Vitor Constancio mentioned the exchange rate. Has it reached its limits or is there a lot more to go?

Here is their view, courtesy of eFXnews:

EUR/USD: Caution Warranted Ahead Of ECB; What’s The Trade? – Credit Agricole

Credit Agricole CIB Research discusses the EUR outlook, and notes that in the near term concerns may grow that EUR has moved too far too quickly for comfort.

“We think that caution is warranted ahead of the ECB meeting on January 25 where President Draghi could try once again to talk down the currency…That could suggest that investors may opt to take profit on long-EUR positions before long,” CACIB argues.

The above being said, chasing the EUR-rally higher may still be profitable in the case of EUR/AUD and EUR/NZD,” CACIB advises.

In terms of other trade recommendations, CACIB closed on Friday its long EUR/USD* trade at 1.2200 for a 2.6% profit and its long EUR/CHF* trade at 1.1800 for a 4.4% profit as targets were reached on both positions.

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EUR/USD: ‘In EUR We Trust’; GBP/USD: Conviction Call For A Rally To 1.40 – ING

ING Research discusses EUR/USD, and GBP/USD outlook and maintains a strong bullish bias on the 2 pairs through Q1 of 2018.

“Bear trend in $/Asia re-introduces EUR demand from Asian CBs. Intervention to buy USD is re-cycled into EUR, similar to 2005-07….

Our conviction call is for GBP/USD to rally to 1.40 in 1Q18 on an agreed Brexit transition deal and hawkish BoE policy re-pricing,” ING argues.

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