Credit Suisse FX Strategy Research makes the case for further EUR upsidein the coming months mainly on the ground of the following 3 reasons:
1- CS take the view that the French election does not result in a Le Pen victory, allowing for the risk premium still priced into 2m EURUSD implied volatility and risk reversals to be taken out, and for EUR to rally as a result.
2- CS argues that along with the current account support for EUR that is a persistent backdrop, the recent more hawkish ECB tilt, and the fact that global reserve manager allocations to EUR are still near historical lows, this leaves room for more EUR upside.
3- CS is also encouraged by the positive momentum in European equities this year even in the face of the currency's recent recovery.
Copy signals, Trade and Earn $ on Forex4you - https://www.share4you.com/en/?affid=0fd9105
In line with this view, CS now targets EUR/USD at 1.10 in 3-month and 1.12 in 12-month.