EUR/USD could drop to 1.1750 amid a potential ECB-Fed divergence – Nordea

Dhwani Mehta FXStreet

In its weekly note, the analysts at Nordea Markets recommend taking a short euro trade against the US dollar.

Key quotes

“Go for EUR/USD short at current levels, with 1.1750 target and stop-loss at 1.2220.”

“Approaching "pain thresholds" for the ECB in Euro area fixed income.”

“ECB will accordingly be clearly more inclined to "ease up" compared to the Federal Reserve.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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