3 fundamental reasons to sell EUR/USD - BNP Paribas

BNP Paribas suggested to make a short with EUR/USD with 1.0900 target and 1.1630 stop loss, and it is based on 3 fundamental reasons:

• "Further risk-on – Eurozone capital outflows resume and markets start to reprice Fed hikes = EURUSD lower."
• "Stable risk – Without a strong impulse from risk sentiment, the eurozone’s trade surplus is probably still putting some natural upward pressure on EURUSD. But with valuations already expensive, EUR funding should be more attractive = no clear signal for EURUSD."
  
• "Return of risk-off – EURUSD continues to rally, which forces the ECB to step up dovish rhetoric and ultimately ease policy = EURUSD first higher, then lower."
  

"We entered a short EUR/USD position with a target at 1.0900, and a stop at 1.1630."