Credit Agricole Research discusses EUR outlook and sees a scope for further consolidation over the coming week.
"The Euro has been stabilizing of late, partly on the back of improving fundamentals as for instance reflected in yesterday’s better than expected German ifo business climate survey. This is regardless of increasing worries over the coronavirus outbreak becoming a serious downside risk to the Eurozone’s growth outlook, a development that led to markets starting to price in further ECB monetary policy easing later this year," CACIB notes.
"While we believe that excessive short positioning implies most negatives with respect to the monetary policy outlook are in the price we advise against chasing the single currency lower from here. If anything, we anticipate further stabilizing price developments in the weeks to come," CACIB adds.