EUR/USD: the euro should climb back towards 1.25 in the medium term (ANZ bank)

ANZ estimates that the EUR/USD could move to 1.25 in the coming months as fundamentals stabilise in the euro area.

"Trade talks between Trump and Juncker have been successful and have eased trade tensions, but this should continue for the next few months.

The ECB has not changed its forward guidance and its medium-term growth and inflation outlook. However, Draghi has been more confident in his outlook for growth and inflation.

We think a more positive environment for the EUR is emerging. Stabilising growth and reduced trade tensions should allow the EUR to progress in the coming months.

We recommend buying the EUR/USD around current levels and strengthening positions on any downward movement. We expect a medium-term move to 1.25 and above."