Nordea FX Strategy Research notes that EUR/USD recent price action reflects how things don't matter until they suddenly start to matter, as evidenced by the market recently having to digest the political events surrounding Catalonia.
"Further escalations cannot be ruled out, such as a formal declaration of independence (which would be short-term EUR-negative). We also think these events serve as a reminder that several strong centrifugal forces remain at work across the West," Nordea argues.
"While EUR/USD trades at our Q4 forecast of 1.17, we think a sell-on rally stance makes sense for now," Nordea advises.
Source: Nordea ResearchOriginal Article
