23 Mar 2015
EUR/USD could rebound towards year-end – Danske Bank
FXStreet (Edinburgh) - Despite the broad bearish picture for the pair, analysts at Danske Bank suggested the likeliness of a rebound towards year-end.
Key Quotes
“In a broader FX context, we note that the Fed, albeit voicing concerns regarding weaker US net exports in the statement, does not appear as eager to take part in a global currency war as others (think Riksbank, SNB)”.
“A dip below parity on EUR/USD should in itself not be an obstacle to a summer hike”.
“We maintain our call that EUR/USD will remain soft on a 3-6M horizon as the Draghi-Yellen divergence continues to weigh”.
“We also maintain that a rebound is in store towards year end as the ECB embraces a rise in eurozone inflation, and the Fed tightens policy only very slowly. We still target 1.08 in 12M”.
Key Quotes
“In a broader FX context, we note that the Fed, albeit voicing concerns regarding weaker US net exports in the statement, does not appear as eager to take part in a global currency war as others (think Riksbank, SNB)”.
“A dip below parity on EUR/USD should in itself not be an obstacle to a summer hike”.
“We maintain our call that EUR/USD will remain soft on a 3-6M horizon as the Draghi-Yellen divergence continues to weigh”.
“We also maintain that a rebound is in store towards year end as the ECB embraces a rise in eurozone inflation, and the Fed tightens policy only very slowly. We still target 1.08 in 12M”.