Credit Suisse FX Strategy Research makes a case for not raising its EUR/USD forecasts yet despite the pair's recent rally.
CS's rationale behind this view revolves mainly on the US side as we're still waiting for more color on tax reform odds, which could come as soon as the House of Representatives vote on healthcare reform.
"If healthcare reform does pass the House, the market will likely have higher expectations for the wider agenda being activated too, which should in principle boost the USD ," CS argues.
As such, CS puts 2 conditions for revising their EUR/USD forecasts profile higher in the near-term: if a) healthcare reform passes the House and b) the USD still gets no lift or weakens further.
CS targets EUR/USD at 1.03 in 3-month. EUR/USD is trading at 1.0781 as of writing.
Source: Credit Suisse ResearchOriginal Article
