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19 May 2015
EUR/USD points to 1.05 in Q4 2015 – JP Morgan
FXStreet (Edinburgh) - According to analysts at JP Morgan, the pair is expected to resume its leg lower to 1.05 by year-end.
Key Quotes
“We’ve raised the Q2 EUR/USD target from 1.07 to 1.12 as the U.S. dollar bubble deflates, but leave the medium-term forecasts unchanged at 1.05 for Q4 2015 and 1.03 for Q1 2016”.
“A resumption of the euro’s downtrend rests almost solely with revival of the US economy and eventual Fed tightening, since Europe’s balance of payments profile is much more stable than some had presumed simply because ECB QE had delivered negative bond yields earlier this year”.
“Our recent client survey highlighted how extreme euro pessimism was as recently as late April, with almost 70% of corporate and investor clients reporting short positions or currency hedges”.
Key Quotes
“We’ve raised the Q2 EUR/USD target from 1.07 to 1.12 as the U.S. dollar bubble deflates, but leave the medium-term forecasts unchanged at 1.05 for Q4 2015 and 1.03 for Q1 2016”.
“A resumption of the euro’s downtrend rests almost solely with revival of the US economy and eventual Fed tightening, since Europe’s balance of payments profile is much more stable than some had presumed simply because ECB QE had delivered negative bond yields earlier this year”.
“Our recent client survey highlighted how extreme euro pessimism was as recently as late April, with almost 70% of corporate and investor clients reporting short positions or currency hedges”.