27 Feb 2015
EUR/USD to see 1.10 by 2015-end – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, expects ECB’s QE, Fed’s rate hike and the Greece scenario to push EUR/USD lower towards 1.10 by 2015-end and to 1.08 on a 12-15m view.
Key Quotes
“Even though German economic survey days has seen an improvement in recent weeks, the dynamics behind the ECB’s forthcoming QE programme look set to have a more overwhelming impact on yields and thus on the EUR in the coming weeks as investors position themselves for the start of bond buying schedule.”
“Market speculation that foreign holders of Eurozone bonds may be more prepared to sell their holdings to the ECB could heighten the downside impact of the ECB’s programme on the EUR particularly in the early phase of the programme.”
“The combination of speculation regarding the impact of the ECB’s bond buying programme on the EUR and the timing of the Fed’s first rate hike looks set to dominate the outlook for EUR/USD into the spring and summer.”
“Periodically, headlines regarding Greece are also likely to have an influence during this period.”
“While we expect that the net result of these factors will have a negative impact on EUR/USD, we also see the possibility of choppy trading as expectations regarding Fed policy chop and change.”
“We see EUR/USD at around 1.10 at the end of this year and trending towards 1.08 on a 12 to 15 mth view.”
Key Quotes
“Even though German economic survey days has seen an improvement in recent weeks, the dynamics behind the ECB’s forthcoming QE programme look set to have a more overwhelming impact on yields and thus on the EUR in the coming weeks as investors position themselves for the start of bond buying schedule.”
“Market speculation that foreign holders of Eurozone bonds may be more prepared to sell their holdings to the ECB could heighten the downside impact of the ECB’s programme on the EUR particularly in the early phase of the programme.”
“The combination of speculation regarding the impact of the ECB’s bond buying programme on the EUR and the timing of the Fed’s first rate hike looks set to dominate the outlook for EUR/USD into the spring and summer.”
“Periodically, headlines regarding Greece are also likely to have an influence during this period.”
“While we expect that the net result of these factors will have a negative impact on EUR/USD, we also see the possibility of choppy trading as expectations regarding Fed policy chop and change.”
“We see EUR/USD at around 1.10 at the end of this year and trending towards 1.08 on a 12 to 15 mth view.”