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21 Aug 2015
EUR/USD expected to bottom out near term – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Christin Tuxen expects the pair to drift lower in the upcoming months.
Key Quotes
“We still think EUR/USD will see a bottom in early autumn”.
“First, the US curve will swiftly adapt to the tightening environment and support from higher US rates to the greenback fade during the course of H2”.
“Second, the euro-zone output gap could close fast and the focus will then turn to the uptick in both headline and core inflation”.
“We have revised our 3M and 6M forecasts a little higher to 1.06 (prev. 1.04) and 1.08 (1.06), respectively. Further out, the cross should edge towards the higher levels warranted by fundamentals and we maintain a 12M forecast of 1.10”.
Key Quotes
“We still think EUR/USD will see a bottom in early autumn”.
“First, the US curve will swiftly adapt to the tightening environment and support from higher US rates to the greenback fade during the course of H2”.
“Second, the euro-zone output gap could close fast and the focus will then turn to the uptick in both headline and core inflation”.
“We have revised our 3M and 6M forecasts a little higher to 1.06 (prev. 1.04) and 1.08 (1.06), respectively. Further out, the cross should edge towards the higher levels warranted by fundamentals and we maintain a 12M forecast of 1.10”.