EUR/USD could see unprecedented move higher - Citi

Published 23/04/2025, 13:18
© Reuters.

Investing.com - The U.S. dollar has been hit hard of late, and as a result Citigroup (NYSE:C) has adjusted its target in the EUR/USD pair to adjust for the sudden movement, which could reach unprecedented levels.

At 08:15 ET (12:15 GMT), EUR/USD fell 0.1% to $1.1410, but this still represented a move higher of well over 5% this month, and 10% of the course of this year.

“In our portfolio we stay long EUR/USD spot, moving the target from 1.15 to 1.20,” Citi analysts said, in a note dated April 23. “Given the pace of the EURUSD move, we add a 3m 1.1850 digi with a 1.23 KO as an overlay trade.” 

The bank has outlined the risks of U.S. capital flight, and since then has seen evidence of repatriation. Additionally, Europe-based investors have been seen rolling two-month losses on unhedged U.S. assets at historic levels, suggesting incentives for adjustments in hedge ratios or allocations. 

At this level, the four-month spot rate of change in EUR/USD would be +19% - this has never happened before, Citi added.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.