EUR/USD: HSBC recommends purchase of dollars, expects euro to drop to 1.15

HSBC believes that the EUR/USD will likely gradually decline towards 1.15.

"Short-term interest rates are very high in the United States, and you have the 125 million wealthiest taxpayers backing you.

On the forex, everything is a matter of short-term rate differentials, not 10-year rates.

The United States seems to be doing well, while other nations are falling short. The European economy remains shaky, and Europe has gone from the Macron euphoria to the current situation in Italy.

So, cyclically and politically, Europe seems worse off.

We still expect the EUR/USD to pull back to 1.15".