The economists of ENG comment on the outlook for EUR/USD.
Positioning still looks quite long on EUR/USD
“Despite the correction in EUR/USD from almost 1.11 to 1.08, the net speculative long position in EUR still looks quite stretched and presents outside risk in EUR/USD to the 1.05 area if conditions take it there. Such conditions could include serious speculation about another couple of Fed rate hikes (only another 10bp of hikes are currently quoted) or severe dislocation in US money markets if the US Treasury comes close. much to an unthinkable default on your debt. Neither of these is our reference vision and instead the EUR/USD is likely to stay in this 1.08 zone for a while“.
“We believe that the The third quarter will be the period in which the clear signs of disinflation in the US and the weaker activity data drive a much more evident bearish trend in the dollar.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
