FX Strategists at Citigroup expect the EUR/USD pair to be trading in a 1.12-1.15 range, laying out the reasoning behind their bullish outlook.

Key quotes

“China reopen coinciding with US inflation peaking and lower Natural gas price.”

“Represents material shift in market narrative, opening a new FX regime.”

“Risk to view is renewed equity weakness that would support US Dollar. “

“Technicals favor EUR/USD gains toward major Fib 1.0938.”

“However, dealers beware option-related headwinds thereafter.”