Weekly FX pick from Mitsubishi
EUR/USD is down 43 pips to 1.1943 today and MUFG expects it to fall further in the next week. They suggest selling the pair at spot with a target of 1.1700 and a stop at 1.2080.
“The failure to advance above the 1.2000 level and the lurch lower today on higher UST yields we think signals scope for a further move to the downside for EUR/USD,” they note.
“We look set to break new highs on the 10-year yeld and this will continue to weigh mostly on the low-yielding G10 currencies like JPY, EUR, CHF and SEK,” MUFG adds.