What's next for the euro
Nomura Research discusses EUR/USD outlook and looks to re-engage in long exposure around the 1.18 level.
"EUR/USD has moved lower than nominal or real rates spreads would imply, suggesting USD strength has slightly overshot in the short term; however, sentiment is definitely USD bullish, which is hard to ignore...The mixed messaging from flows and mobility data versus price action has prompted us to take stock of what's going on and is why we've turned neutral EUR/USD for the past week and short EUR/GBP," Nomura notes.
"We have 1.18 in mind as the next level where long EUR/USD positions are attractive once again with 1.17 acting as a strong support via the end-March low," Nomura adds.
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