EUR/USD had already surpassed the 1.1700 level but retreated a bit. What’s next?
Here is their view, courtesy of eFXdata:
CIBC Research discusses EUR/USD outlook and adopts a bullish bias over the medium-to-long term.
Looking beyond interest-sensitive capital flows, remember that the euro is also buttressed by an attractive Eurozone current account surplus that is expected to remain well above 3% of GDP.
A combination of ongoing capital flows, reduced political risk dynamics, still above-trend growth and the potential for earlier than expected central bank action in 2019 point towards medium run EUR gains.
Our end of 2019 target of 1.28 may seem like a reach, but it’s actually only a bit above the average level seen since the global financial crisis,†CIBC argues.
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