Key Points:
HSBC’s speculative flow tracker is currently the most relevant EUR/USD driver.
2️⃣ Valuation Looks Stretched Relative to Rate Differentials ?
Recent narrowing in spreads hasn’t been reflected in EUR/USD weakness—suggesting overvaluation.
Swift and sizable EU fiscal stimulus is now key to justifying elevated EUR/USD levels.
Conclusion:
HSBC sees EUR/USD as overextended, with its recent gains driven more by speculative positioning than solid macro support. Unless European fiscal stimulus materializes quickly and convincingly, the Euro risks a pullback, especially as rate differentials no longer justify further upside.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.
This article was written by Adam Button at www.forexlive.com.Hence then, the article about hsbc eur usd looks overstretched as gains driven more by flows than fundamentals was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( HSBC: EUR/USD looks overstretched as gains driven more by flows than fundamentals )
Also on site :