#EURUSD @ 0.98433 : Bearish bias for October – MUFG
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
The EUR/USD is trading below 0.9830, on its way to the lowest weekly close in decades. Analysts at MUFG Bank hold a bearish perspective on the EUR/USD pair for October. They see the pair trading in a range between 0.9500 and 1.03000.
“In the month ahead, we are maintaining a short EUR/USD bias. The Fed’s commitment to deliver further large rate hikes and the tightening of global financial conditions should continue to favour a stronger US dollar. The Fed has signalled clearly that it wants to see sustained evidence that inflation pressures are easing before delivering a dovish policy pivot. The stronger US CPI report for August has provided an even higher hurdle for a dovish pivot.”
“The main upside risk to our bearish EUR/USD bias could be triggered by a further paring back of more acute energy supply concerns in Europe. If the price of gas continues to fall heading into the winter it would help to ease fears over a sharper slowdown in the euro-zone. At the same time, the EUR could strengthen more than expected if the ECB keeps raising rates at a faster pace while the Fed signals that is considering slowing hikes.”
[/s2If]
Join Our Telegram Group
