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14 Aug 2015
EUR/USD could test parity by year-end – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the pair could test the parity level towards the end of the current year.
Key Quotes
“We are keeping our EUR/USD end-2015 projection at parity. A December Fed rate hike, instead of our call for September, could lead to a more volatile path”.
“Although the US data has not been strong enough and the Eurozone data has not been weak enough compared with the consensus, both remain consistent with a further divergence of monetary policies, which will be negative for the Euro”.
“Furthermore, we expect the US data to improve further, while Eurozone inflation to remain well below the ECB’s target. Even if EUR/USD does not reach parity this year, we are confident that it will end 2015 well below the current level”.
Key Quotes
“We are keeping our EUR/USD end-2015 projection at parity. A December Fed rate hike, instead of our call for September, could lead to a more volatile path”.
“Although the US data has not been strong enough and the Eurozone data has not been weak enough compared with the consensus, both remain consistent with a further divergence of monetary policies, which will be negative for the Euro”.
“Furthermore, we expect the US data to improve further, while Eurozone inflation to remain well below the ECB’s target. Even if EUR/USD does not reach parity this year, we are confident that it will end 2015 well below the current level”.