6 Mar 2015
EUR/USD points to 1.05 on a 12-m view - Rabobank
FXStreet (Edinburgh) - According to Jane Foley, Senior FX Strategist at Rabobank, the pair could head to the 1.05 area in a 12-month horizon.
Key Quotes
“Based on the US’s falling current account and budget deficits and improving growth outlook we turned bullish on the USD outlook at the start of last year”.
“However, the ferocity of the EUR’s reaction to the ECB’s policy response to deflation risk has taken us by surprise and EUR/USD has fallen faster than we predicted in recent months”.
“While the EUR is not a policy tool, there is little doubt that a weak currency can be instrumental in exporting deflationary risks”.
“ECB President Draghi has been manipulating the EUR masterfully in recent months allowing the ECB to take the podium in the latest round of currency wars”.
“On anticipation that its assets purchase plan will have further market impact, we have revised lower our EUR/USD forecasts and now look for a move to 1.05 on a 12 mth view”.
Key Quotes
“Based on the US’s falling current account and budget deficits and improving growth outlook we turned bullish on the USD outlook at the start of last year”.
“However, the ferocity of the EUR’s reaction to the ECB’s policy response to deflation risk has taken us by surprise and EUR/USD has fallen faster than we predicted in recent months”.
“While the EUR is not a policy tool, there is little doubt that a weak currency can be instrumental in exporting deflationary risks”.
“ECB President Draghi has been manipulating the EUR masterfully in recent months allowing the ECB to take the podium in the latest round of currency wars”.
“On anticipation that its assets purchase plan will have further market impact, we have revised lower our EUR/USD forecasts and now look for a move to 1.05 on a 12 mth view”.