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14 Aug 2015
EUR/USD seen at 1.07 on a 3-month view – Rabobank
FXStreet (Edinburgh) - Senior Currency Strategist at Rabobank Jane Foley has argued that the pair might test the 1.0700 level in a 3-month horizon.
Key Quotes
“It is possible that ECB officials may respond to the better tone in the EUR with dovish rhetoric and further reassurances that it is committed to maintaining its aggressive QE policy”.
“If other central banks in Asian do ease policy further this could also help lift risk appetite”.
“However, it is likely that the ECB will struggle to reinvigorate the bearish sentiment that engulfed the EUR in the middle of last year and pushed EURUSD to a low of 1.0558 in mid-March”.
“We are still forecasting that interest rate differentials will push EUR/USD lower towards 1.05 on a 12 mth view”.
“However, it is likely that the pace of any move lower this year will be moderate”.
“Based on the expectations that the Fed will hike rates in December we are forecasting a move towards 1.07 on a 3 mth view. However, currently there appears to be upside risk to this view”.
Key Quotes
“It is possible that ECB officials may respond to the better tone in the EUR with dovish rhetoric and further reassurances that it is committed to maintaining its aggressive QE policy”.
“If other central banks in Asian do ease policy further this could also help lift risk appetite”.
“However, it is likely that the ECB will struggle to reinvigorate the bearish sentiment that engulfed the EUR in the middle of last year and pushed EURUSD to a low of 1.0558 in mid-March”.
“We are still forecasting that interest rate differentials will push EUR/USD lower towards 1.05 on a 12 mth view”.
“However, it is likely that the pace of any move lower this year will be moderate”.
“Based on the expectations that the Fed will hike rates in December we are forecasting a move towards 1.07 on a 3 mth view. However, currently there appears to be upside risk to this view”.