Credit Agricole: EUR/USD limited downside risk from the current levels - eFXnews

FXStreet (Łódź) - The eFXnews team remark that Credit Agricole, which sees unstable risk sentiment and rising US yieldpressuring the euro, expect only limited downside risk from the current levels in the short-term.

Key quotes

"This is due to limite room of further rising Fed monetary policy expectations and as geopolitical tensions are unlikely making a case of sustainably rising risk aversion."

"It must be noted too, that investors’ focus will shift to this week’s PMI releases, which may point to further expanding business activity."

"All of the above combined rising speculative short positioning in suggests only limited risk reward for selling EUR/USD around the current levels."