EUR/USD: Risks skewed to the downside amid a 'bumpy' Q4 for euro area – JP Morgan

Analysts at JP Morgan recommended staying short on EUR/USD in anticipation of a bumpy Q4 for the Euro area.

Key quotes

“Looking at positive developments on vaccines.”

“These reduce tail risks for 2021.”

“This should prompt flows out of USD but this is being limited by short USD positioning and UST yield rise.”

“Not recommending short USD aggressively for now.”

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