What is the forecast for EUR crosses?
Here is their view, courtesy of eFXdata:
Citi flags a scope for further downside moves in EUR crosses.
“EUR crosses remain vulnerable and flow now supports this. We emphasize the risk to EUR crosses once again and highlight that we are now seeing EURCAD selling following the moves in EURAUD, EURNZD and the break of significant downside support levels,” Citi notes.
“We still believe in the ‘reflation’ trade but remain cautious about running too much outright USD risk,” Citi adds.