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Aug 06 - 09:55 AM

EUR/USD: 3 Drivers For Further EUR/USD Upside Towards 1.25 Ahead Of The US Elections - Citi

By eFXdata  —  Aug 06 - 08:35 AM

Citi maintains a bullish bias on EUR/USD and adds a long exposure via a 2.5 month (19 October 2020) EUR/USD call spread.

"We remain bullish EURUSD as per our CitiFX Strategy H2 2020 Global Outlook and still see EUR upside vs USD and the majors. Three potential major drivers of EUR and EURUSD upside to us are: i) Low real rates supporting risk appetite ii) shifting investor appetite towards Europe amid a cyclical global recovery iii) risk premia around Biden winning the US election,' Citi notes. 

"The confluence of these three factors should see a both persistent USD offer and EUR bid, leaving 1.25 as a conservative target ahead of the election," Citi adds. 

Source:
Citi Research/Market Commentary

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