ING FX Strategy Research discusses the EUR outlook in 2018 and maintains a strong bullish bias on EUR/USD targeting a move towards 1.25.
"Our message to investors in 2018 is to embrace the strong euro; the next major catalyst for a move higher will be when markets position for higher ECB deposit rats – and this story could see EUR/USD rallying to 1.25 by summer 2018.
Our estimates suggest that only a sharp rise in EUR/USD above 1.25 over a short period of time (say 1Q18) would test the ECB's 'pain threshold'. This scenario, however, would be unlikely in the absence of any disorderly Eurozone bond market moves or an externally driven downturn in the global risk environment," ING argues.
Source: ING Global Markets ResearchOriginal Article
