EUR/USD: A test of the 1.10 level is on the cards – OCBC
|EUR/USD touched below 1.1100 briefly before rebounding higher. The market may be expecting further downside moves, therefore, economists at OCBC Bank do not rule out a test towards 1.1000.
Potential for further downside
“Movements in the options space (EUR and GBP puts favoured, implied vols spiking) suggest potential for further downside.”
“Structurally, Europe has the most to lose on the macro front, and the ECB is likely most open to dovish u-turns at this juncture.”
“Do not rule out a test towards 1.1000.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.