MUFG looking for EUR/USD to 1.05

<p>MUFG summary via eFX.</p><p align="left">
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out eFX Plus</a>.</p><ul><li>Current Tight Trading Range: MUFG notes that EUR/USD has been trading within a narrow range of 1.0500 to 1.1000, supported by their short-term valuation model that takes into account yield spreads, equity market performance, and energy prices. </li><li>Downward Pressure on EUR/USD: MUFG expects EUR/USD to gravitate towards the lower end of the aforementioned range. They attribute this to various short-term fundamentals that include yield differentials and other economic variables. </li><li>Temporary Lift from ECB Hike: MUFG acknowledges that an ECB rate hike next week could provide a brief respite for the euro, but they believe this effect would be temporary. </li><li>Consistent View on USD: The bank's forecast aligns with their updated view that the USD is likely to remain strong for the rest of this year.</li></ul><p>—-</p><p>As an update for the opening of the week, the USD is a touch weaker across the board with USD/JPY shunted lower on Ueda's comments made Wednesday and reported over the weekend.</p><p>in chronological order:</p><ol><li><a href="https://www.forexlive.com/centralbank/bank-of-japan-governor-ueda-says-his-focus-is-on-a-quiet-exit-reducing-monetary-easing-20230910/" target="_self">Bank of Japan Governor Ueda says his focus is on a 'quiet exit' reducing monetary easing</a></li><li><a href="https://www.forexlive.com/centralbank/usdjpy-indicating-a-big-figure-lower-than-friday-after-exit-comments-from-boj-gov-ueda-20230910/" target="_self">USD/JPY indicating a big figure lower than Friday after 'exit' comments from BOJ Gov Ueda</a></li><li><a href="https://www.forexlive.com/centralbank/more-on-bank-of-japan-governor-ueda-weekend-comments-sending-usdjpy-100-points-lower-20230910/" target="_self">More on Bank of Japan Governor Ueda weekend comments sending USD/JPY 100 points lower</a></li></ol><p>4.<a href="https://www.forexlive.com/centralbank/icymi-boj-gov-ueda-weekend-remarks-indicating-boj-focus-will-now-be-on-a-quiet-exit-20230910/" target="_self">BOJ Gov. Ueda weekend remarks indicating BOJ focus will now be on “a quiet exit”</a></p>

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