Nomura: big drop in EUR/USD is unlikely
Analysts at Nomura claim that EUR will remain supported by the ongoing equity inflows in the euro area over the past few months, even though technical factors are starting to be bearish.
“We believe that a sizeable drop in EUR/USD is unlikely until US data picks up more meaningfully”, say the specialists. They underline that the key near-term event is the release of US non-farm payrolls on Friday.
“There could be a more moderate drop, driven by (long) position unwinding and perhaps some central bank reserve rebalancing after recent reserve draw downs. But a quick break of $1.30 in EUR/USD does not look particularly likely to us”, claims Nomura.