EUR/USD is consolidating its significant gains under the 1.12 level. What’s next for the world’s most popular currency pair?
Here is their view, courtesy of eFXnews:
BTMU FX Strategy Research notes that EUR/USD has extended its rebound against the US dollar over the past week moving back in line with levels which persisted prior to the US election.
In addition, BTMU notes that the EUR is also deriving support from the strengthening economic recovery in the euro-zone expecting this week’s PMI surveys for May to signal that growth is likely to strengthen further in Q2.
However, BTMU thinks that EUR/USD appears to be running a little ahead of fundamentals now, arguing that recent US political developments won’t materially alter the likelihood of the Fed raising rates in June.
As such, BTMU is turning neutral on EUR/USD around current levels expecting the pair to trade in a 1.0900-1.1400 range in the near-term.
EUR/USD is trading circa 1.1190 as of writing.