25 Mar 2015
EUR/USD year-end target at 1.05 – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, believes the pair could head towards 1.05 by end 2015.
Key Quotes
“EUR proved relatively stable during February as the currency was torn between Greek headlines, a slight improvement in the economic fundamentals, negative interest rates that drove EUR outflows and a broadly stable USD”.
“By month’s end, one month volatility had collapsed back down towards 8% and the average 10-day rolling intraday range had narrowed to 100-points”.
“The CFTC reported a relatively stable and large net short EUR position, while other sentiment indicators remained bearish”.
“EUR’s downward trend remains in place and medium-term technicals are bearish”.
“Negative interest rates and the ECB’s QE program juxtaposed against a Fed that is inching towards higher interest rates, combined with negative sentiment and EUR outflows suggest ongoing EUR depreciation. We hold a year-end target of 1.05”.
Key Quotes
“EUR proved relatively stable during February as the currency was torn between Greek headlines, a slight improvement in the economic fundamentals, negative interest rates that drove EUR outflows and a broadly stable USD”.
“By month’s end, one month volatility had collapsed back down towards 8% and the average 10-day rolling intraday range had narrowed to 100-points”.
“The CFTC reported a relatively stable and large net short EUR position, while other sentiment indicators remained bearish”.
“EUR’s downward trend remains in place and medium-term technicals are bearish”.
“Negative interest rates and the ECB’s QE program juxtaposed against a Fed that is inching towards higher interest rates, combined with negative sentiment and EUR outflows suggest ongoing EUR depreciation. We hold a year-end target of 1.05”.