6 Mar 2015
Scope for a test of 1.05 in EUR/USD in the medium term – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Arne L. Rasmussen sees spot easing further ground towards 1.05 in a 6-month horizon.
Key Quotes
“In respect of the QE bond purchases Draghi said that it would start on Monday and that the ECB will be ready to buy bonds with yields as low as the deposit rate at -0.20%”.
“The readiness to buy bonds with negative yields and the upbeat forecasts triggered a new rally in periphery bonds and also European equity markets performed strongly”.
“The EUR came under renewed pressure against the USD and the Scandi currencies and we think that there is more of the same waiting for the markets”.
“We continue to see value in periphery bonds, risky assets in general and see further downside for EUR/USD and expect that the cross will drop to 1.05 on a 6M horizon”.
Key Quotes
“In respect of the QE bond purchases Draghi said that it would start on Monday and that the ECB will be ready to buy bonds with yields as low as the deposit rate at -0.20%”.
“The readiness to buy bonds with negative yields and the upbeat forecasts triggered a new rally in periphery bonds and also European equity markets performed strongly”.
“The EUR came under renewed pressure against the USD and the Scandi currencies and we think that there is more of the same waiting for the markets”.
“We continue to see value in periphery bonds, risky assets in general and see further downside for EUR/USD and expect that the cross will drop to 1.05 on a 6M horizon”.