Macron Wins: EUR/USD: 'Buy The Rumor, Sell The Fact' – Barclays

Barclays Capital FX Strategy Research argues that the victory of Emmanuel Macron carries the risk of a ‘buy the rumor, sell the fact’ for EUR/USD. 

Such a risk, according to Barclays, implies a down-move in EUR/USD, given the current long EUR pre-positioning and given that the EUR political-risk premium was reduced significantly by the “benign” first round outcome.

In line with this view, Barclays expects EUR/USD to depreciate mildly over the remainder of this year, as monetary policy divergence and some residual political-risk premia weigh on the common currency.

Barclays targets EUR/USD at 1.09 by the end of Q2, and at 1.06 by the end Q3

EUR/USD is trading circa 1.0970 as of writing. 

Source: Barclays Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

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