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

Credit: REUTERS/DADO RUVIC

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.

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

EUR=EBShttps://tmsnrt.rs/2DtgHBA

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

((Richard.Pace@thomsonreuters.com))

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

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