MUFG trade of the week: Sell EUR/USD

In its weekly FX pick, analysts at MUFG suggest selling the euro from spot with a target at 1.0710 and a stop at 1.1230.

“Based on the events unfolding and the immediate outlook ahead, we see a greater risk of a renewed deterioration in market conditions with the US dollar set to advance versus European currencies,” they wrote in a note.

“With QE persisting in the eurozone through to June we believe EUR/USD remains vulnerable to a renewed lurch lower to test the recent initial post-invasion low of 1.0806.”

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