EUR/USD down and up and down again on the news from Germany. Yet in general, the pair sticks to the middle of the range. What’s next? Here are two opposing views:
Here is their view, courtesy of eFXnews:
EUR/USD: The Signal From Flows Supports Bullish EUR View Into 2018 – Nomura
Nomura FX Strategy Research discusses the EUR outlook going into next year by taking a look at the broader flow picture – where the basic balance of the euro area’s BoP has improved gradually this year.
“The stronger economy has attracted equity and FDI flows, while the current account surplus has stayed robust. We see three reasons for fixed income flows turning more positive into 2018, which should turn the basic balance of the BoP firmly into a surplus.
We expect EUR to trade more resiliently as mid-term flow shifts, and thus we maintain a EUR bullish bias into next year,†Nomura argues.
Nomura targets EUR/USD at 1.25 by year-end and at 1.28 by end of Q1 of 2018.
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EUR/USD: Consider Going Short On A Bounce Into 1.1850 – Nordea
Nordea FX Strategy Research discusses EUR/USD outlook, and recommends that investors should consider establishing short positions on bounces into the 1.1850 level.
“We admit that there has been plenty of technical damage done to the dollar as evident in a DXY index below its uptrend and a EUR/USD breaking above its downtrend.
But dollar-positive year-end effects as well as improving US inflation vs EA inflation still point in the direction of a lower EUR/USD. We recommend going short at 1.1850,†Nordea argues.
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