EUR/USD: Any Dips On Positioning-Squaring A Buying Opportunity – Credit Agricole

Credit Agricole CIB FX Strategy Research notes that next week will become more active in terms of Euro-Area data releases.

"The main focus will be preliminary September PMI releases, especially as CPI releases will be final revisions and therefore only subject to low surprise potential. In an environment of further improving conditions, we believe that growth is firm enough to compensate for a stronger currency’s dampening impact on inflation developments," CACIB adds.

"While it cannot be ruled out that the EUR will face some shortterm downside risks, as indicated by elevated speculative long positioning, we believe that dips should still prove a buy, with further room for rising policy expectations putting a floor beneath the single currency," CACIB argues.

Source: Credit Agricole CIB ResearchOriginal Article