BUZZ-COMMENT-U.S bank expects EUR/USD north of 1.3000


Aug 6 (Reuters) - In its daily note to clients, JP Morgan continued to see a good possibility of EUR/USD reaching 1.2500 this year, and expect it north of 1.3000 next year.

The bank says it's plausible the euro could slow down this summer and enter a multi-week consolidation period, but it doubts a sell-off will exceed 2%.

JPM remains bullish, but with a reduced position, after the recent move, considering it will want to buy into pullbacks. The bank advocates preserving a healthy long, as EUR/USD has shown it can keep going this week. That makes tactically moving to the sidelines, or even reducing to a small core, a risky move from an opportunity-cost perspective.

EUR/USD was last above 1.2500 in Feb 2018 when it peaked 1.2556, with 1.30 not seen since late 2014.

1.20 is a huge option level to contend with first

For more click on FXBUZ


(Richard Pace is a Reuters market analyst. The views expressed are his own)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.