NAB, Credit Suisse and DB see a higher EURUSD
Do you like the EURUSD? So does some institutional players according to eFX Plus (subscribe by clicking here)
NAB FX Strategy research remained comfortable with its view for higher EURUSD on the back of the solid and increasingly broad economic recovery in the Euro Zone, against a shifting dynamics in the US.
Credit Suisse maintains its bullish view on the EURUSD on the ground the better-than-expected growth and political outcomes combined with its "under-owned) structural position should give the EUR room to rally further. However, CS suspects that inflationary forces are still not strong enough to tolerate sustained EURUSD rally well beyond 1.1500 without prompting central-bank reaction. CS targets EURUSD at 1.1500 in Q3.
Deutsche Bank FX Strategy research promotes buying EURUSD tactically on the ground that the air recent rally as another leg higher targeting 1.1600. The breakdown in the traditionally tight correlation with the yield spread signals a rare regime break and the possibility of large flows into the euro zone that could gather more momentum in coming weeks as medium-term investors still retain large underweight position in EURUSD. They went long today at 1.1404 with a target of 1.1600 and a stop of 1.1295.
The following insight was compliments of eFX Plus. You can subscribe to their service by CLICKING HERE.
