Danske Research discusses EUR/USD outlook and maintains a medium-term short exposure via a seagull for longer tenors (6-12M).
"This is a low-beta trade with a fully capped worst case. The Chinese tightening cycle seems to be playing out and we think this will aid in seeing a top in spot between Q1 and Q2," Danske notes.
"Going into January, we would, however, simply follow the momentum and also see the Fed, Brexit and global macro/vaccines as being supportive of EUR/USD at current or higher levels. This is well in line with our expectation prior to taking on the trade and our 1M forecast at 1.24," Danske adds.