EURUSD daily
MUFG Research added a short EUR/USD to its Trade of the Week portfolio. MUFG is short EUR/USD with a target at 1.0400, and a stop at 1.10.
“We are recommending a new short EUR/USD trade recommendation. We expect the EUR to weaken further against the USD in anticipation of Donald Trump imposing higher tariffs on imports from the EU soon after he comes to power in early 2025. It will deliver a negative growth shock for the euro-zone economy which has been recovering this year from the negative energy price shock triggered by the start of the Ukraine conflict,” MUFG notes.
“We expect the ECB to keep cutting rates with inflation falling back to the ECB’s target,” MUFG adds.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.