Nordea Research sees a good risk-reward for engaging in EUR/USD short exposure around current levels but opts to stay sidelined for now.
"EUR/USD has recently been held up by a combination of the re-opening momentum in Europe and the according emerging hiking bets in the EUR swap," Nordea notes.
"We now find a better risk/reward in re-entering EUR/USD shorts, but decide to keep our powder dry until later in the summer as e.g. Southern Europe will keep delivering positive surprises through June due to a continued reopening process. Our end-year target around 1.15 in EURUSD remains intact," Nordea adds.