The euro remains under pressure and is struggling to remain above the 1.08 level. What is the structural bias towards the EUR in the coming months?
Here is their view, courtesy of eFXdata:
To TD Research maintains a structural bearish view on the eur in the coming months.
“We are going to analyze the way in which the alternative currencies have responded to the government’s responses to the epidemic, stressing that these measures account for about a third of the price of the share during the last three months. A less stringent response, has been a godsend, which also dovetails with the mobility data. Who has benefited from currencies in Asia, but also in SEK. The EUR looks to be the next shoe to drop, reflecting both the growth and the political economy of fragmentation,” TD notes.
“The MILLIONS of tells an interesting story. In Its response, the index (GDP-weighted or EZ countries) has been one of the strongest in the sample, and yet the euro has outperformed. The Citymapper, the data also show relatively low mobility in major European cities, and the average value is also very low compared to the sample). A Portion of these adjustments with our EUR outlook, which we believe, leaves it vulnerable to a deeper correction in the coming months,” TD adds.
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