Credit Agricole CIB Research advises more caution on EUR in the the near-term.
"We note that concerns about a double-dip recession in the Eurozone have already resulted in a reversal of the unhedged ETF stock market inflows. Another risk would be contagion from Italy spreading to other peripheral spreads and thus discouraging further inflows. Coupled with renewed threats by the ECB that it can cut rates again, this could encourage investors to start hedging their EUR investments again," CACIB notes.
"All this warrants a more cautious near-term outlook on EUR/USD," CACIB adds.