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Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone���s relatively better balance of payments position.
We expect the US dollar to underperform ahead of the first Federal Reserve (the Fed) interest rate cut of this cycle.
With volatility in FX markets close to all-time lows, we explore the rising risks that could see larger moves in currencies going forwards.
EURUSD should be rangebound
The potential for unilateral US currency intervention arose as a topic of research interest last year, and discussion has intensified over recent weeks.
The Canadian dollar has weakened throughout the Bank of Canada's hiking cycle over the last two years.
Currency movements based onbrexit's outcome.