EUR: Balanced Positioning; Staying Long EUR/USD, EUR/CHF - Credit Agricole

Credit Agricole CIB FX Strategy Research discusses the EUR outlook this week and maintaining a bullish bias on the single currency and staying long EUR/USD* and EUR/CHF*.

"We remain of the view that the EUR faces upside risks even though the ECB is unlikely to consider a less dovish policy stance anytime soon...It must be noted too that speculative EUR positioning is back in balanced territory. Such conditions lessens the risk of further currency downside and instead implies that the last few weeks’ downside was corrective rather than a change in trend," CACIB argues.

 Data-wise, CACIB notes that  will be quiet in terms of top tier data releases.

"While the ZEW economic sentiment survey is unlikely to trigger any sustainable currency trends, there may still be some limited focus on the release of final October CPI and preliminary Q3 GDP," CACIB adds.

Source: Credit Agricole CIB Research