26 May 2015
EUR/USD at 1.06 in 6-month – Rabobank
FXStreet (Edinburgh) - In the view of Senior Currency Strategist Jane Foley at Rabobank, the pair could test the 1.06 region in a 6-month view.
Key Quotes
“Spain’s weekend election news has served to enhance the market’s nervousness regarding the outlook for EMU”.
“Any agreement for Greece which would lift the near-term risk of a debt default would likely lift the EUR near-term”.
“However, the extent of any relief rally is likely to be dictated by the broad based direction of the USD”.
“Fed Chair Yellen noted on Friday that some of the weakness of the US economy at the start of this year was due to ‘statistical noise’”.
“It is our longstanding view that the Fed will not be ready to raise rates until December. That said, since the ECB has indicated that its asset purchases programme will extend well into next year, we continue to view the divergence of Fed and ECB policy as consistent with a downside bias in EUR/USD”.
“We maintain a forecast that EUR/USD will head towards the 1.06 level on a 6 month view”.
Key Quotes
“Spain’s weekend election news has served to enhance the market’s nervousness regarding the outlook for EMU”.
“Any agreement for Greece which would lift the near-term risk of a debt default would likely lift the EUR near-term”.
“However, the extent of any relief rally is likely to be dictated by the broad based direction of the USD”.
“Fed Chair Yellen noted on Friday that some of the weakness of the US economy at the start of this year was due to ‘statistical noise’”.
“It is our longstanding view that the Fed will not be ready to raise rates until December. That said, since the ECB has indicated that its asset purchases programme will extend well into next year, we continue to view the divergence of Fed and ECB policy as consistent with a downside bias in EUR/USD”.
“We maintain a forecast that EUR/USD will head towards the 1.06 level on a 6 month view”.