Euro forecasting focuses on politics rather than fundamentals

mitul-kotecha
Mitul Kotecha, Credit Agricole

If there is one thing foreign exchange strategists and traders agree on, it is that EUR/USD, the most widely traded currency pair, has been a woefully challenging instrument in which to take long-term positions this year. Following a rally in the first half that brought it close to 1.50, the intensifying crisis in the eurozone and the challenges facing the US economy combined to keep eurodollar fairly range-bound before falling sharply in September and October as Greece's outlook deteriorated.

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