10 Mar 2015
Credit Suisse: EUR/USD below parity over 12-m – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares that Credit Suisse has revised their forecast for EUR/USD, and further argue that EUR might be slowly converting into a funding currency.
Key Quotes
“CS argues that the extensive scope of sovereign QE in the euro area could catalyse a structural and persistent shift from EUR. CS thinks that anecdotal evidence between January's and last week’s ECB meeting has supported this idea, with European investors seemingly keen to pick up yield overseas and with overseas companies rushing to issue debt in negative-yield currencies such as EUR and CHF to exploit low yields.”
“"We are revising our EURUSD forecast set to 1.05 in 3m (1.09 prior) and 0.98 in 12m (1.02 prior)," CS projects.”
“"In addition, we are now of the view that the market is increasingly willing to hold short EUR positions on crosses in G10 space as well.. If EUR really does replace JPY as the funding currency of choice due to negative rates, this trend can have a lot further to run, to EUR’s overall detriment," CS adds.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“CS argues that the extensive scope of sovereign QE in the euro area could catalyse a structural and persistent shift from EUR. CS thinks that anecdotal evidence between January's and last week’s ECB meeting has supported this idea, with European investors seemingly keen to pick up yield overseas and with overseas companies rushing to issue debt in negative-yield currencies such as EUR and CHF to exploit low yields.”
“"We are revising our EURUSD forecast set to 1.05 in 3m (1.09 prior) and 0.98 in 12m (1.02 prior)," CS projects.”
“"In addition, we are now of the view that the market is increasingly willing to hold short EUR positions on crosses in G10 space as well.. If EUR really does replace JPY as the funding currency of choice due to negative rates, this trend can have a lot further to run, to EUR’s overall detriment," CS adds.”
This content has been provided under specific arrangement with eFXnews.