In a note dated May 27, Credit Suisse update...>

EURO: In a note dated May 27, Credit Suisse update their thinking on EUR vs. a

number of other currencies. CS write that the prospect of Eurozone debt

mutualisation has helped them shift their bias to a 'buy dips' strategy for

EUR/USD instead of 'sell rallies' for the first time since 2017.

- CS see the policy move reducing downside risk in EUR/CHF, seeing the cross

rangebound between 1.05-1.07 and shift their EUR/GBP target higher to 0.93.

- Against the USD, CS see EUR/USD pushing beyond the 200-dma to make a test on

their new near-term target at 1.12, unless a pushback to the EU recovery fund

gathers sufficient steam.

- On this basis, CS recommend buying EUR/USD $1.14 6-month call options, with

longer low delta EUR calls now offering good value given low implied volatility

and risk reversals still skewing in favour of puts.