Credit Agricole: EUR/USD is undervalued ahead of upcoming Fed meeting
Written by Emily J. Thompson, Senior Investment Analyst
Source: InvestingliveForex
Updated: 1 hour ago0mins
Dollar Weakness Expectations: Credit Agricole predicts further dollar weakness in December, suggesting that EUR/USD is undervalued based on their FAST FX model and the widening interest rate spread between the euro and the dollar.
Seasonal Trends: The firm notes that historically, the euro has outperformed the USD in December, with EUR/USD rising in 8 of the last 10 December cycles.
Profit-Repatriation Flows: Credit Agricole anticipates increased demand for the euro as exporters accelerate profit-repatriation flows towards year-end.
Future Outlook: The firm expects EUR/USD to continue gaining in the upcoming week unless there are unexpected positive developments for the dollar.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
