9 Jan 2015
EUR/USD downtrend picks up steam - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that the EUR/USD pushed below the 1.18 level this week for the first time since late 2005.
Key Quotes:
"The downward trend has been in place since the middle of 2014 fuelled by the anticipated divergent trends between Federal Reserve and ECB policy this year, but the recent drop in EUR/USD has been attributed to two additional factors - the renewed political uncertainties in Greece and last week’s news that the percentage of global reserve holdings of the EUR fell to its lowest level in Q3 since 2002".
"At the start of this week we revised down our 12 month forecast for EUR/USD to 1.15. While it currently appears that there are downside risks to this forecast, we would emphasize that the move lower in EUR/USD is unlikely to be a straight line and that we see scope for USD dips in the coming months".
Key Quotes:
"The downward trend has been in place since the middle of 2014 fuelled by the anticipated divergent trends between Federal Reserve and ECB policy this year, but the recent drop in EUR/USD has been attributed to two additional factors - the renewed political uncertainties in Greece and last week’s news that the percentage of global reserve holdings of the EUR fell to its lowest level in Q3 since 2002".
"At the start of this week we revised down our 12 month forecast for EUR/USD to 1.15. While it currently appears that there are downside risks to this forecast, we would emphasize that the move lower in EUR/USD is unlikely to be a straight line and that we see scope for USD dips in the coming months".