Back
21 Oct 2013
Flash: EUR/USD down to 1.2800 in 12m view – Rabobank
FXstreet.com (Edinburgh) -Jane Foley, Senior Strategist at Rabobank, expects the EUR/USD to return to the área of 1.2800 in a 12-month horizon mainly due to the gradual recovery of the greenback.
Key quotes
“In view of the struggles still faced by many Eurozone countries in overcoming the mantles of austerity and slow growth, the monetary tightening implied by the stronger EUR/USD rate will not be welcomed by the ECB”.
“We continue to expect that the USD will be able to win back ground vs. the EUR. This perception is based on the view that a strengthening US business cycle will eventually allow the Fed to taper its QE program at a time when ECB is still attempting to keep the pressure on Eurozone market rates”.
“We maintain our previous forecast of a 12 mth EUR/USD exchange rate at 1.28”.
Key quotes
“In view of the struggles still faced by many Eurozone countries in overcoming the mantles of austerity and slow growth, the monetary tightening implied by the stronger EUR/USD rate will not be welcomed by the ECB”.
“We continue to expect that the USD will be able to win back ground vs. the EUR. This perception is based on the view that a strengthening US business cycle will eventually allow the Fed to taper its QE program at a time when ECB is still attempting to keep the pressure on Eurozone market rates”.
“We maintain our previous forecast of a 12 mth EUR/USD exchange rate at 1.28”.