EUR/USD could drop to 1.1750 amid a potential ECB-Fed divergence – Nordea

In its weekly note, the analysts at Nordea Markets recommend taking a short euro trade against the US dollar.

Key quotes

“Go for EUR/USD short at current levels, with 1.1750 target and stop-loss at 1.2220.”

“Approaching "pain thresholds" for the ECB in Euro area fixed income.”

“ECB will accordingly be clearly more inclined to "ease up" compared to the Federal Reserve.”