3 reasons to sell EUR/USD
According to Credit Agricole, any EUR/USD levels near to $1.3000 prove unsustainable and that rallies are to be sold. Specialists give three fundamental reasons for that:
- ECB is expected to keep the same dovish monetary policy stance compared to the last meeting. This means that ECB President Draghi will likely continue to leave all options open, including the possibility of cutting the deposit rate to negative territory;
- Growth prospects of the euro zone’s economy remain muted;
- US growth prospects will continue to improve, which should be especially reflected in further improving consumer strength. As a result, expectations for the Fed to become less dovish on will remain intact.