EUR/USD OPEN TO A PUSH TOWARDS 1.1250 AS ECB STICKS TO ITS GUNS – CREDIT SUISSE

Economists at Credit Suisse look for EUR/USD to push towards 1.1250.

EUR still being carried by the ECB

“At the start of Q1 we wrote ‘a hawkish ECB framework, lower energy prices in Europe and a market fixation with US disinflation potential all leave room for EUR/USD to push again towards 1.0950 near-term.’ With that framework intact/strengthened post US bank failures in March and a stubborn ECB, we expect an extension now to 1.1250.”

“The key view risk is that banking stress spills over into Europe or that political tensions exacerbate, though the 1.0500 level should be strong support.”