6 Mar 2015
EUR/USD: 0.8500 target by 2016-end – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team view that EUR/USD’s slide from the last May peak at 1.40 has only come half-way, targeting the pair at 0.8500 by end of next year.
Key Quotes
“In January, the euro slid 6.6% against the dollar. In February it fell less than 1%. Some participants are seeing the loss of downside momentum as a sign that a significant bottom was at hand.”
“Given the underlying divergence of monetary policy that strikes us as unprecedented, we suspect the dollar bull market/euro bear market is a little more than half way to where it is ultimately going in this cycle.”
“The euro peaked last May near $1.40. It has fallen 30 cents.”
“We anticipate it falling toward the euro's record lows set in 2000 near $0.8200 and have suggested a $0.8500 target by the end of next year.”
“This is not simply about fair value. It is understanding that such powerful moves in the foreign exchange market most often do not end before any reasonable model of fair value is overshot.”
Key Quotes
“In January, the euro slid 6.6% against the dollar. In February it fell less than 1%. Some participants are seeing the loss of downside momentum as a sign that a significant bottom was at hand.”
“Given the underlying divergence of monetary policy that strikes us as unprecedented, we suspect the dollar bull market/euro bear market is a little more than half way to where it is ultimately going in this cycle.”
“The euro peaked last May near $1.40. It has fallen 30 cents.”
“We anticipate it falling toward the euro's record lows set in 2000 near $0.8200 and have suggested a $0.8500 target by the end of next year.”
“This is not simply about fair value. It is understanding that such powerful moves in the foreign exchange market most often do not end before any reasonable model of fair value is overshot.”