18 May 2015
Remaining cautious around the euro - ANZ
FXStreet (Guatemala) - Brian Martin, analyst at ANZ explained that having quickly trumpeted the success of the QE programme, the euro’s recovery would seem to have gone far enough for now.
Key Quotes:
"Although having recovered from its January low (-0.6% y/y),HICP inflation is zero and well below the ECB’s target of close to but below 2%."
"The growth outlook in China is very precarious, the US economy is slow to re-accelerate and the ECB’s forecast that growth will rise 1.5% this year and that inflation will recover towards 1.5% next year are predicated on an EUR/USD exchange rate around current levels (1.13/1.14)."
"In the short term, the EUR may have overshot to the downside in March, but there are many reasons to be cautious going forward."
Key Quotes:
"Although having recovered from its January low (-0.6% y/y),HICP inflation is zero and well below the ECB’s target of close to but below 2%."
"The growth outlook in China is very precarious, the US economy is slow to re-accelerate and the ECB’s forecast that growth will rise 1.5% this year and that inflation will recover towards 1.5% next year are predicated on an EUR/USD exchange rate around current levels (1.13/1.14)."
"In the short term, the EUR may have overshot to the downside in March, but there are many reasons to be cautious going forward."