EUR/USD: Potential for further gains is limited – Crédit Agricole
|In the view of economists at Crédit Agricole EUR/USD is overbought and vulnerable.
Downside risks for EUR/USD
“The Euro appears overbought, which could leave it susceptible to any downside surprises from upcoming German ZEW and Eurozone consumer confidence data, as well as updated economic forecasts from the European Commission. Additionally, any confirmations from ECB speakers that most of the tightening is already behind us and terminal rates are in sight, might fail to significantly boost the EUR rate advantage.”
“The recent decline in positive Eurozone economic surprises compared to those in the US indicates potential near-term downside risks for EUR/USD. In addition, FX investors have seemingly already built considerable EUR/USD long positions in recent months, potentially limiting further gains.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.