5 Jun 2015
EUR/USD still seen at 1.06 by year-end – Rabobank
FXStreet (Edinburgh) - According to Jane Foley, Senior Currency Strategist at Rabobank, the pair keeps intact its bearish perspective towards 1.06 by end of 2015.
Key Quotes
“While a weak payrolls release this afternoon is a clear risk factor for the USD, the EUR has issues of its own”.
“Volatility in Bund yields brought on by low liquidity, the Eurozone reflation story and Greek default uncertainties have been feeding through into the EUR”.
“Optimism that Greek will find a compromise with its creditors has been riding high this week even though today’s deadline for a repayment to the IMF has been pushed back to June 30 by a little used rule that allows the debtor nation to bundle all its monthly repayments into one”.
“The far left faction of the Greek government may yet protest about pension related structural reforms that the creditors are demanding, though Greece’s alternate choices at this stage appear bleak”.
“Assuming a deal is signed relief could push EUR/USD higher in the short-term. That said we expect continued QE by the ECB to drive the EUR/USD towards 1.06 by year-end on the assumption that US data supports a Fed rate hike in December”.
Key Quotes
“While a weak payrolls release this afternoon is a clear risk factor for the USD, the EUR has issues of its own”.
“Volatility in Bund yields brought on by low liquidity, the Eurozone reflation story and Greek default uncertainties have been feeding through into the EUR”.
“Optimism that Greek will find a compromise with its creditors has been riding high this week even though today’s deadline for a repayment to the IMF has been pushed back to June 30 by a little used rule that allows the debtor nation to bundle all its monthly repayments into one”.
“The far left faction of the Greek government may yet protest about pension related structural reforms that the creditors are demanding, though Greece’s alternate choices at this stage appear bleak”.
“Assuming a deal is signed relief could push EUR/USD higher in the short-term. That said we expect continued QE by the ECB to drive the EUR/USD towards 1.06 by year-end on the assumption that US data supports a Fed rate hike in December”.