EUR/USD: Barclays maintains its bearish position and explains why

Barclays estimates that the EUR/USD is the best pair to exploit their bullish opinion on the dollar and explains why:

1- "Several factors explain what happened with the EUR/USD in the last month and this highlights our optimism for what we anticipate for the coming months. For now, we continue to expect 0.95 in a year."

2- "The pause in the decline of the EUR/USD was partially related to the increase in borrowing rates in the euro zone. A lot has been said to see if the raise implemented as of April was a reversal or a correction. We think it was a correction. We have a strong belief that the ECB will not be comfortable with a new rate increase at current levels."

3- "We believe it is time to get back to selling EUR/USD, particularly because of our expectations about the spread of US and German rates rates (which will increasingly favour the dollar)."

Barclays sold at 1.1240 with a stop loss at 1.1680 and a target at 1.0460.