EUR: Expecting EUR/USD to test 1.15 by year-end – Nomura

Analysts at Nomura are long EUR/USD and expect a breakout from the tight range which is prevalent in recent years.

Key Quotes

“A positive macro backdrop and recovering inflation may see the ECB start to normalise policy in coming years, announcing a tapering of the APP in September and rate hikes in 2018. We expect this to be positive for the euro. We also believe a multiyear dollar downtrend is also in the making and the impact of Fed tightening on the USD is waning. We continue to expect EUR/USD to test 1.15 by year-end, but raise slightly our Q2 and Q3 forecasts this year.”