TD Research discusses EUR/USD outlook and maintains a neutral bias in the near-term. TD targets EUR/USD at 1.14 by mid-year.
"We see considerable two-way risks for now. Sequencing matters highly. EUR could begin to rally if growth dynamics begin to improve and real rates rise, but this may be a Q2 story - or later," TD notes.
"Nearterm, threats of auto tariffs pose a considerable threat to EUR if the US pivots to a focus on Europe. This could send EURUSD into a new, lower trading range," TD adds.