What is the outlook for EUR/USD in the near-term?
Here is their view, courtesy of eFXdata:
NAB Research sees EUR/USD trading in 1.1950-1.2250 range over the coming few weeks.
“Our base case has been that EU vaccinations would pick up markedly in Q2, which would ‘merely’ leave Europe perhaps a couple of months behind its peer group. Moreover, it’s become increasingly clear that in the second and third wave lockdowns the strength of the German and broader EU manufacturing sector has stood the area in very good stead against the hit to global services activity,” NAB notes.
“There may be more twists and turns but right now the global recovery narrative is alive and via the ‘USD Smile’ framework, that suggests a reversion to a declining USD once again…EUR/USD 1.1950-1.2250 for now,” NAB adds.
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