Credit Agricole CIB Research discusses EUR/USD outlook in light of yesterday's FOMC meeting and maintains its views that dips are attractive buy in the medium-term.
"On balance, yesterday’s announcement & press conference had only limited impact on central bank rate expectations and that explains muted impact on markets too," CACIB argues.
"View wise, one cannot exclude that the greenback stays subject to downside risks. Even though policy expectations appear broadly stable, speculative USD long positioning remains elevated. Hence, position squaring-related downside risk seems high.
This is fully in line with our FX positioning update from Monday. In particular majors such as EUR/USD may therefore continue to prove a buy on dips," CACIB advises.