EUR/USD may climb further as corporates adjust hedges - BofA

EUR/USD is trading near 1.0800, having gained 0.5% this week amid broad euro strength. Bank of America suggests that if the euro rally persists, underhedged European corporates may accelerate demand for EUR hedges, creating a positive feedback loop driving further EUR/USD gains. This effect could be amplified in thin liquidity conditions. Key resistance is seen at 1.0850, with a break above opening the door to the 1.1000 handle. However, a reversal below 1.0750 support could negate the bullish bias. Traders should monitor corporate hedging flows and liquidity metrics to gauge the potential for outsized EUR/USD moves in the near-term.