3 Feb 2015
EUR/USD long term bearish, short-term upside risks – BAML
FXStreet (Barcelona) - According to Bank of America-Merrill Lynch, EUR/USD sees some short-term upside risks but the longer term view remains bearish, forecasting the pair to end 2015 at 1.10 and 2016 at 1.05.
Key Quotes
“Following the aggressive ECB action, we marked-to-market our projections, keeping a weakening path.”
“We are projecting EUR/USD at 1.10 by the end of 2015 and 1.05 by the end of 2016.”
“Despite remaining bearish in the medium term, we see some upside risks in the short term. The CFTC data suggests that the market’s short EUR/USD position is stretched.”
“Relative macro data and fundamentals suggest that EUR/USD is too weak.”
“Eurozone data could also improve as the weak Euro, low oil prices, and positive spillovers from growth in the US start to positively affect the Eurozone economy.”
“The balance of payments also points to some upside EUR risks.”
Key Quotes
“Following the aggressive ECB action, we marked-to-market our projections, keeping a weakening path.”
“We are projecting EUR/USD at 1.10 by the end of 2015 and 1.05 by the end of 2016.”
“Despite remaining bearish in the medium term, we see some upside risks in the short term. The CFTC data suggests that the market’s short EUR/USD position is stretched.”
“Relative macro data and fundamentals suggest that EUR/USD is too weak.”
“Eurozone data could also improve as the weak Euro, low oil prices, and positive spillovers from growth in the US start to positively affect the Eurozone economy.”
“The balance of payments also points to some upside EUR risks.”