Credit Agricole still likes the euro
Credit Agricole CIB FX Strategy Research discusses EUR outlook in light of yesterday’s ECB policy announcement.
«The announcement is keeping risk sentiment stable, and may keep risk-asset-related capital flows in favour of the single currency. In addition, any form of tapering should be taken as lowering fears about currency depreciation and thereby may still benefit unhedged asset allocations towards the Eurozone by foreign investors,» CACIB argues.
«From that angle we are not ignoring the possibility that the EUR will face renewed upside risks going into the year-end.
As such we stick to our long EUR/USD and EUR/CHF trade recommendations,» CACIB advises.
They will be stopped out on a fall below 1.1520, however. They have more room to breathe on EUR/CHF.
For bank trade ideas, check out eFX Plus.