Nomura FX Strategy Research discusses the EUR outlook going into next year by taking a look at the broader flow picture – where the basic balance of the euro area’s BoP has improved gradually this year.
"The stronger economy has attracted equity and FDI flows, while the current account surplus has stayed robust. We see three reasons for fixed income flows turning more positive into 2018, which should turn the basic balance of the BoP firmly into a surplus.
We expect EUR to trade more resiliently as mid-term flow shifts, and thus we maintain a EUR bullish bias into next year," Nomura argues.
Nomura targets EUR/USD at 1.25 by year-end and at 1.28 by end of Q1 of 2018.
Source: Nomura Securities ResearchOriginal Article
