Comments from an analyst note from Nomura on the euro, recommend buying short-term puts on the euro.
Note that while equity markets are recovering, emerging market FX is outperforming, EUR and other G-10 currencies are lower against the USD.
- "EUR/USD is not trading as it usually would
- This is not normal and when normality does return we would look to reenter EUR longs."
Nomura is bullish EUR/USD longer term and looks to buy it lower later in February.
- looks for higher once the pace of the EU’s vaccine program improves
Targets:
- 1.27 in Q2/3
- 1.30 in Q4 into 2022