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11 Mar 2015
EUR/USD 1.05 is the next big target – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale comments that if Fed’s actions widens the 2-year rate gap to around 200bp next year, then EUR/USD may drop well below parity, with 1.05 being the next big level currently.
Key Quotes
“Meanwhile, Greek debt talks resume in Brussels, and Fed-watcher Jon Hilsenrath writes in the Wall Street Journal that the Fed is very likely to drop the reference to ‘patience' in the FOMC statement next week, and the ECB bond-buying programme is up and running.”
“EUR/USD 1.05 is the next big target, but short-covering risks notwithstanding, if Fed action widens the 2-year rate gap from its current 85bp to, say 200bp over the next year, then we'll surely see EUR/USD well below parity. After all, in the last 12 months that spread has fallen by 83bp, and EUR/USD has fallen by 30figures....”
Key Quotes
“Meanwhile, Greek debt talks resume in Brussels, and Fed-watcher Jon Hilsenrath writes in the Wall Street Journal that the Fed is very likely to drop the reference to ‘patience' in the FOMC statement next week, and the ECB bond-buying programme is up and running.”
“EUR/USD 1.05 is the next big target, but short-covering risks notwithstanding, if Fed action widens the 2-year rate gap from its current 85bp to, say 200bp over the next year, then we'll surely see EUR/USD well below parity. After all, in the last 12 months that spread has fallen by 83bp, and EUR/USD has fallen by 30figures....”