EUR/USD: Euro to profit from flows related to FX reserve diversification – CIBC

Economists at CIBC Capital Markets analyze EUR/USD outlook.

Paring in EUR longs for now

Near-term real economic headwinds, notably manufacturing, underline the prospect of paring in EUR longs for now. 

But over the long-term, we still have the EUR forecast profile skewed higher given the expected benefits from flows related to FX reserve diversification.

EUR/USD – Q3 2023: 1.06 | Q4 2023: 1.08

See – EUR/USD: Less gloomy outlook for the US economy relative to the Euro area to weigh on the pair – Danske Bank