EURUSD daily chart
EUR/USD daily

MUFG Research adds a new short EUR/USD position to its trade of the week portfolio targeting a move towards 1.0770, with a stop at 1.1160.

"We have instigated a short EUR/USD trade idea to reflect the potential bias favouring yield and hence the dollar over the short-term," MUFG notes. "So far in August, EUR/USD has struggled to sustain levels over 1.1000 and yesterday after the CPI print in the US was another example.

The resilience of US yields in the face of another positive CPI data print points to ongoing US dollar support over the short-term," MUFG adds.

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