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8 Jan 2015
12 mth forecast for EUR/USD at 1.15 - Rabobank
FXStreet (Bali) - Rabobank has revised its 12 mth forecast for EUR/USD to 1.15, expecting the better fundamentals of the US economy to continue drawing the USD higher.
Key Quotes
"We turned bullish on the USD a year or so ago on the back of the improvement in the US budget and current account positions. The widening disparity on the policy positions of the ECB and BoJ relative to the Fed has fostered the uptrend in the USD index."
"We anticipate that the ECB will announce full blown QE by the end of Q1 and the current low level of peripheral bond yields suggests that such policy action is widely anticipated by the market."
"While we expect the better fundamentals of the US economy will continue to draw the USD higher this year against the EUR and the JPY, we do not expect that the USD’s uptrend will be a straight line."
"If, as we expect, the market pushes back its forecast for the first Fed rate increase, the USD’s behaviour this year could prove to be choppy. Our 12 mth forecast for EUR/USD stands at 1.15."
Key Quotes
"We turned bullish on the USD a year or so ago on the back of the improvement in the US budget and current account positions. The widening disparity on the policy positions of the ECB and BoJ relative to the Fed has fostered the uptrend in the USD index."
"We anticipate that the ECB will announce full blown QE by the end of Q1 and the current low level of peripheral bond yields suggests that such policy action is widely anticipated by the market."
"While we expect the better fundamentals of the US economy will continue to draw the USD higher this year against the EUR and the JPY, we do not expect that the USD’s uptrend will be a straight line."
"If, as we expect, the market pushes back its forecast for the first Fed rate increase, the USD’s behaviour this year could prove to be choppy. Our 12 mth forecast for EUR/USD stands at 1.15."