Citi doubles down on bearish EUR/USD stance By Investing.com


Investing.com – Citigroup has doubled down on its bearish stance, citing the current disappointing European financial exercise information.

Information launched earlier this week confirmed that eurozone enterprise exercise contracted sharply this month.

HCOB’s preliminary , compiled by S&P International, sank to 48.9 this month from August’s 51.0, under the 50 mark that separates progress from contraction for the primary time since February.

The downturn appeared broad-based with Germany, Europe’s largest economic system, seeing its decline deepen whereas France, the bloc’s second largest – returned to contraction following August’s Olympics increase.

The financial institution cited draw back dangers to progress within the eurozone, saying manufacturing stays a drag whereas the one- off boosts to companies (e.g., Olympics) could also be reversing. 

“Furthermore, whereas the manufacturing stoop is a world concern, the US stays extra insulated than Europe,” Citi mentioned. “With markets pulling ahead Fed cuts after the September FOMC, we expect focus can shift as to if the ECB is falling behind the curve, significantly if European information proceed to weaken whereas US preliminary claims stay low.”

The backdrop can be one the place US election danger ought to resurface as a headwind for EUR; swing state polling is tight (we anticipate some USD+ premium to be priced) and the following US jobs report shouldn’t be till Oct. 4. 

“We stay brief EUR/USD in each spot and choices,” says Citi, ceiling a spot reference charge of 1.1112.

At 07:35 ET (11:35 GMT), EUR/USD rose 0.1% to 1.1122. 

 





Source link

Related articles

Crimson Magic Astra Gaming Pill Launched With Snapdragon 8 Elite SoC, 8,200mAh Battery

Crimson Magic Astra gaming pill has been launched in choose world markets. It's outfitted with a Snapdragon 8 Elite SoC coupled with a RedCore R3 Professional in-house gaming chip that's mentioned to enhance...

Crypto Sentiment Stays Robust Regardless of BTC Worth Drop

Crypto market sentiment has held regular regardless of Bitcoin tumbling virtually 2% over the previous day to alter arms near the $105,000 value stage.The sentiment-tracking Crypto Worry & Greed Index posted a “Greed”...

The greenback reached its lowest degree since February 2022 amid coverage uncertainty – Foreign money – 1 July 2025

The US greenback has dropped to its lowest degree since February 2022 amid rising uncertainty in US commerce and financial coverage. The...

Aurora Borealis Might Hit These 16 States Over the Subsequent 2 Days

Alongside fireworks and drone exhibits, individuals could have one other excuse to lookup on the sky this week, at the very least in choose components of the US. The solar has graced Earth...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com