3 Sep 2013
Flash: EUR/USD maintains year-end forecast of 1.27 – Investec
FXstreet.com (Lisbon) - The Investec Research team analyzes the outlook of the EUR/USD and states their long-term projections as several stimuli weigh.
Key quotes
Euro area GDP rose by 0.3% in Q2, ending the zones six quarter long recession. Wile this outturn was flattened by improved weather, surveys for the subsequent period confirm that the single currency bloc continued to expand into Q3.
However, ultimately we do not trust the EUR/USD gains. Despite some improvements in both its public finances and real economy metrics, Greece at the very least continues to be require additional plugs funds to plug a financing gap over the next two year.
Furthermore, Political uncertainty in Italy may also weigh, with the PDL apparently threatening to pull out of the coalition government. Our year-end and 2014 EUR/USD forecasts are 1.27 and 1.22 respectively.
Key quotes
Euro area GDP rose by 0.3% in Q2, ending the zones six quarter long recession. Wile this outturn was flattened by improved weather, surveys for the subsequent period confirm that the single currency bloc continued to expand into Q3.
However, ultimately we do not trust the EUR/USD gains. Despite some improvements in both its public finances and real economy metrics, Greece at the very least continues to be require additional plugs funds to plug a financing gap over the next two year.
Furthermore, Political uncertainty in Italy may also weigh, with the PDL apparently threatening to pull out of the coalition government. Our year-end and 2014 EUR/USD forecasts are 1.27 and 1.22 respectively.