EUR/USD: Sell the rallies amid coronavirus spread, poor fundamentals – Citibank

Analysts at Citigroup offer their view on trading the EUR/USD pair in the near-term, as coronavirus contagion spills over to Italy.

Key quotes:

“The euro is particularly vulnerable against the USD with a China-centric growth disappointment.

Spread of coronavirus to Italy could hamper Europe GDP growth.

EUR still one of the best carry shorts against the USD in G10.

EUR fundamentals poor and short-term rates are negative.

Recommend shorting EUR/USD at 1.0850, target 1.0500 and stop loss at 1.1010.”