20 Jan 2015
EUR/USD could test 1.10 in 12-month view – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior Currency Strategist at Rabobank, suggests the value of the European pair could slip to 1.10 in a 12-month horizon.
Key Quotes
“By whipping the markets into a frenzy of anticipation ahead of Thursday’s policy-meeting, ECB President Draghi has succeeded in squeezing out a huge amount of market impact from the promise of QE and the currency markets are taking the strain”.
“There is the danger of a ‘sell on the fact’ reaction which could push the EUR a little higher”.
“However, Draghi has proved himself in the past to be masterful in directing markets”.
“The EUR may not be a policy tool of the ECB, but the policy decisions taken since June last year suggest that the central bank is bent on weakening it”.
“We have revised lower our 12 mth EUR/USD forecast to 1.10”.
Key Quotes
“By whipping the markets into a frenzy of anticipation ahead of Thursday’s policy-meeting, ECB President Draghi has succeeded in squeezing out a huge amount of market impact from the promise of QE and the currency markets are taking the strain”.
“There is the danger of a ‘sell on the fact’ reaction which could push the EUR a little higher”.
“However, Draghi has proved himself in the past to be masterful in directing markets”.
“The EUR may not be a policy tool of the ECB, but the policy decisions taken since June last year suggest that the central bank is bent on weakening it”.
“We have revised lower our 12 mth EUR/USD forecast to 1.10”.