BNP Paribas on another likely catalyst for a higher EUR/USD

Via BNP Paribas analysts, looking for a stronger euro still:

• “If European investors agree with our view that there could be a rotation out of U.S. assets with the euro a key beneficiary, hedge ratios could rise or dollar asset allocations could be reduced.”
• could drive a higher EUR/USD
• the sensitivity of the euro to rotation out of U.S. equities into Europe could be higher than it has been in the past due to eurozone investors’ larger stocks of U.S. equity holdings now

This article was written by Eamonn Sheridan at www.forexlive.com.