EUR/USD: Five reasons why 1.10 could be in the offing – Nomura
|Highlighting five reasons for a potential decline in EUR/USD, analysts at Nomura said, “we find more compelling macro and flow reasons for a move towards 1.10 to be on the horizon, it's just a matter of time.”
Additional quotes
“Rate spreads suggest EUR/USD should be much lower (sub-1.10) and FX is still playing catch up. A global slowdown typically benefits USD.”
“German new orders are in decline and with China slowing too it's difficult to see why European growth should outperform.”
“The euro area's long-running trade surplus is in a steep decline, unlike last year when it was rising.”
“In addition, there is the added uncertainty over rising COVID-19 cases, a new Covid-19 variant and restrictions.”
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