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JPMorgan See EUR/USD as Clean Proxy for Rate Expectations

EUR

JPM issue new short EURUSD trade recommendation - Sees EURUSD as a 'pretty clean proxy' for monetary expectations:

  • They see yesterday's Fed presser as meaning four hikes is no longer a ceiling next year, and the terminal rate pricing is still a long way short of neutral - so plenty of scope for the entire cycle to be re-priced and for another leg-up in the overall USD Index.
  • They target 1.10, with a stop at 1.14.

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