The Euro Vulnerable to Reversal Against USD, says RBC BlueBay Portfolio Manager
Neil Mehta, a portfolio manager at RBC BlueBay, warns that the euro's positive performance may be at risk of reversing. He highlights the euro's susceptibility to weakness, especially against the U.S. dollar, as the U.S. economy shows resilience without significant signs of slowing down. Following the 25 basis point interest-rate hike on Thursday, the likelihood of another rate increase by the European Central Bank in September hinges on upward surprises in inflation figures. However, with strong disinflationary forces in play, maintaining rates at their current level appears to be the default position for an extended period. As a result, the euro trades flat at $1.0979, after hitting a 2.5-week low of $1.0949.
EURUSD
BUY 1.0970 - 1.0980 💯💯
✅ TP1: 1.1010
✅ TP2: 1.1040
🛑 SL: 1.0930
Neil Mehta, a portfolio manager at RBC BlueBay, warns that the euro's positive performance may be at risk of reversing. He highlights the euro's susceptibility to weakness, especially against the U.S. dollar, as the U.S. economy shows resilience without significant signs of slowing down. Following the 25 basis point interest-rate hike on Thursday, the likelihood of another rate increase by the European Central Bank in September hinges on upward surprises in inflation figures. However, with strong disinflationary forces in play, maintaining rates at their current level appears to be the default position for an extended period. As a result, the euro trades flat at $1.0979, after hitting a 2.5-week low of $1.0949.
EURUSD
BUY 1.0970 - 1.0980 💯💯 ✅ TP1: 1.1010
✅ TP2: 1.1040
🛑 SL: 1.0930
