EUR: Further Upside Will Be Faced With Caution; Dips A L-Term Buy – Credit Agricole

Credit Agricole CIB FX Strategy Research argues that further EUR appreciation from current levels will be faced with caution.

This is especially true should growth expectations fail to improve further in order to compensate for a stronger currency’s dampening impact on price expectations. However, as of now medium-term inflation expectations as measured by 5Y inflation swaps have been well supported.

In such an environment, CACIB notes that speculative positioning may play a larger role in driving the single currency in the short-term.

“With speculative oriented investors still running a sizeable long position, some short-term downside risks cannot be excluded,” CACIB adds. 

However, CACIB remains structurally constructive on the EUR and therefore believe EUR dips may well prove a long-term buy.  

Source: Credit Agricole CIB Research

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

from eFXNews

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s