BTMU FX Strategy Research retains its medium-term bullish on the EUR/USD targeting the pair at 1.12 by the end of the year, but warns that there is a risk of a snap-back in the short term.
In that regard, BTMU highlights that over the very short-term the EUR/USD rate having advanced by nearly 4% in less than a month and is beginning to look a little stretched.
“Based on our real yield model, the EUR/USD spot rate has now moved well outside the 1 standard deviation band which in the past has always signalled a correction in spot the other way,” BTMU notes.
EUR/USD is trading circa 1.0990 as of writing.
Source: BTMU Research
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