EUR/USD: Five reasons why 1.10 could be in the offing – Nomura

Dhwani Mehta FXStreet

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.”

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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