Credit Agricole makes a fresh bet against the euro via ForexLive

From Credit Agricole:

The EUR has been correcting higher at the beginning of the week. However, given no change in fundamentals, we believe such upside was mainly position squaring-related. This is especially true as there is no scope of the ECB turning less aggressive anytime soon.

Regardless of the central bank announcing QE and the single currency depreciating for most of the past few months, inflation expectations as measured by 5y forward inflation swaps have remained strongly muted.

Looking ahead, the focus turns to next week's January CPI flash estimates. Weak business activity and muted commodity price developments should keep inflation subject to downside risk.

We sold EUR/USD at 1.1340 with a stop at 1.1680 and a target of 1.0600.

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posted via ForexLive