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9 Feb 2015
EUR/USD to drop further, albeit at a slower pace – Rabobank
FXStreet (Edinburgh) - In the view of Senior Currency Strategist Jane Foley at Rabobank, the pair could extend its decline to the area of 1.10 within the next 12 months.
Key Quotes
“The accelerated pace of the falls in EUR/USD between mid-December and late January forced us and the market to re-think our forecasts for the currency pair through the remainder of the year”.
“Some market participants have penciled in a drop to parity or beyond for EUR/USD. We would argue in favour of a more moderate pace of EUR depreciation in the coming months towards 1.10 on a 12 mth view”.
“How demand for the EUR plays out once the ECB asset purchases plan is in place will be instrumental to mechanics of the FX market over the coming months”.
“We expect that there will be further pressure on European bond yields which should continue to undermine the EUR”.
Key Quotes
“The accelerated pace of the falls in EUR/USD between mid-December and late January forced us and the market to re-think our forecasts for the currency pair through the remainder of the year”.
“Some market participants have penciled in a drop to parity or beyond for EUR/USD. We would argue in favour of a more moderate pace of EUR depreciation in the coming months towards 1.10 on a 12 mth view”.
“How demand for the EUR plays out once the ECB asset purchases plan is in place will be instrumental to mechanics of the FX market over the coming months”.
“We expect that there will be further pressure on European bond yields which should continue to undermine the EUR”.