FXStreet (Bali) - At current levels of 1.33-1.34, when compared to its underlying drivers, EUR/USD looks to be around fair value, notes FX Strategists at JP Morgan.



Key Quotes



"At current levels of 1.33-1.34, EUR/USD looks to around fair value versus its underlying drivers like short-end rate spreads, peripheral spreads and equity volatility."



"Risks are balanced into year-end. Downside (below 1.30 this year) requires a more substantial rise in US 2-yr yields beyond JPM’s target of 0.9%, but the Fed would need to pull forward its guidance to trigger that large a move."



"A much higher EUR/USD (beyond 1.36) would require a softer US economy or decline in US inflation, which also seem like low-odds events."



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    A Fundamental Push for Key EURUSD, GBPUSD and USDJPY Levels?

  2. Forex News

    EURUSD and GBPUSD Will Decide Make-or-Break In Holiday Trading Conditions

  3. Forex News

    Holiday Conditions and Record Equities Remind of Bigger Liquidity Risks

  4. Forex News

    Greek optimism hitting brick wall - BBH

  5. Forex News

    EUR/USD re-focused on 1.1000

Trading Center