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14 May 2015
USD/PEN above 3.50 in 12-month – Rabobank
FXStreet (Edinburgh) - In the view of Strategist at Rabobank Christian Lawrence, the Peruvian sol could depreciate towards the 3.50 level vs. the greenback in 12-m view.
Key Quotes
“USD/PEN traded through the 3.1 target we highlighted on previous occasions and the bullish channel remains firmly in place”.
“The policy rate has been left unchanged at 3.25% but the BCRP has been active in other ways - it has reduced reserve requirements for PEN deposits while increasing them for foreign currencies including FX derivatives and has been actively intervening in FX spot, FX swap and CD markets”.
“We do not see any change in policy rate this year and the economic outlook remains relatively stable”.
“We expect USD/PEN to continue trading higher. There is a risk that the pace of PEN depreciation slows somewhat but we still see USD/PEN trading through 3.50 in 12mths”.
Key Quotes
“USD/PEN traded through the 3.1 target we highlighted on previous occasions and the bullish channel remains firmly in place”.
“The policy rate has been left unchanged at 3.25% but the BCRP has been active in other ways - it has reduced reserve requirements for PEN deposits while increasing them for foreign currencies including FX derivatives and has been actively intervening in FX spot, FX swap and CD markets”.
“We do not see any change in policy rate this year and the economic outlook remains relatively stable”.
“We expect USD/PEN to continue trading higher. There is a risk that the pace of PEN depreciation slows somewhat but we still see USD/PEN trading through 3.50 in 12mths”.