Euro Forecast: Bull Flags Take Shape in EUR/JPY, EUR/USD Rates
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Euro Forecast Overview:
The Euro has lagged some of its major peers as global risk appetite improves around Brexit and US fiscal stimulus headlines.
Both EUR/JPY and EUR/USD rates have retained their bullish posture, however, and bull flags that have been carved out thus far through December suggest more gains may be around the corner.
Per the IG Client Sentiment Index, the Euro has a bullish bias in the short-term.
Euro Holding its Own as Risk Appetite Improves
The Euro has not been a top performing major currency this week, trailing some of its majorpeers as global risk appetite improves around Brexit and US fiscal stimulus headlines. That’s not to the Euro’s discredit; traders are looking for higher yielding and growth-linked assets like the commodity currencies (EUR/AUD, EUR/CAD, EUR/NZD).