EUR/USD: Is EUR out of the Catalan woods? What's The Trade? - Credit Agricole

Credit Agricole CIB FX Strategy Research discusses the EUR outlook following the temporary suspension of the Catalan independence referendum results yesterday.

"In all, we believe that yesterday's decision may take the edge off the "Catalan independence drama" to a degree and may even transform it into a drawn-out negotiation process. 

While the political cloud has not been lifted completely, the skies are brightening up and this could offer some support for EUR. We continue to expect more EUR upside vs USD, JPY and CHF from here," CACIB argues.

In line with this view, CACIB maintains a long EUR/USD* position targeting a move towards 1.22.

Source: Credit Agricole CIB Research