The Euro is up 69 pips to 1.1891 today
Crédit Agricole CIB Research maintains a neutral bias on EUR / USD in the short term.
“We maintain a relatively neutral outlook on EUR / USD in the near term, despite the fact that the Fed’s recent pivot to medium inflation targeting has pushed the pair higher lately. This is partly because than we believe that any future weakness in the USD may be tempered by further steepening of the UST yield curve», CACIB Note.
“We also believe that some positive aspects are linked to the reduction of tail risks in the euro area are already in the EUR price. Indeed, this seems to be reflected in the recent rise of long EURs as suggested by our positioning data. In addition, our short-term FAST FX fair value model continues to suggest that EUR / USD looks expensive relative to short-term fundamentals such as rate and box spreads and the relative performance of the stock market, ”adds CACIB.