Credit Agricole still like the euro
Credit Agricole CIB FX Strategy Research deals with EUR outlook in the light of yesterday’s ECB policy announcement.
«The announcement is now the risk of feeling stable, and may keep the risk asset-related capital flow in favour of the single currency. In addition, any form of tapering should be taken to reduce the concerns about the depreciation of the currency, and which may even benefit non-covered asset allocation to the Euro area by foreign investors,» CACIB argued.
«From this point of view we cannot ignore the possibility that the EUR will face new risks to the upside going into the end of the year.
As such we hold to our long EUR/USD and EUR/CHF trade recommendations,» CACIB advises.
They will be arrested on a drop below 1.1520, however. They have more space to breathe on the EUR/CHF.
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