Home Forex Analysis And Forecasts EUR To Face Upside Risk On Unstable Risk; Sell Rallies - Credit...

EUR To Face Upside Risk On Unstable Risk; Sell Rallies – Credit Agricole

Looking ahead, we remain of the view that risk sentiment will turn more unstable in the weeks to come.

This is mainly due to strongly capped liquidity expectations. Considering the Fed’s more hawkish stance and falling expectations of the ECB and BoJ considering additional stimulus measures this is unlikely to change unless global growth expectations improve more considerably.

Under the above outlined conditions it cannot be excluded that the EUR will face further upside correction risk in the days to come. However, as stressed previously we remain of the view that rallies should be sold.

Even if most ECB members indicated that no more policy action is required, such a stance may change anew should medium-term inflation expectations fall again.

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