24 Jul 2015
EUR/USD points to parity by year-end – Deutsche Bank
FXStreet (Edinburgh) - Analyst Jim Reid at Deutsche Bank believes the pair could hit parity towards end of 2015.
Key Quotes
“On the subject of currencies, it’s worth pointing out that our FX strategists have put out an update on their bearish EUR/USD view”.
“This view has been based on the belief of large-scale European capital outflows (what they call Euroglut) and the eventual prospect of Fed exit from ultra-accommodative policy”.
“They think the European outflow story remains fully on track and as for the Fed they think the Fed's re-investment policy on QE assets is a bigger deal than the timing of rate hikes”.
“Nearly half a trillion dollars of their balance sheet matures in 2016, almost equivalent to a full QE program in reverse”.
“This potential 'QT' is important to their view over time. Nearer term they continue to target parity by year-end”.
Key Quotes
“On the subject of currencies, it’s worth pointing out that our FX strategists have put out an update on their bearish EUR/USD view”.
“This view has been based on the belief of large-scale European capital outflows (what they call Euroglut) and the eventual prospect of Fed exit from ultra-accommodative policy”.
“They think the European outflow story remains fully on track and as for the Fed they think the Fed's re-investment policy on QE assets is a bigger deal than the timing of rate hikes”.
“Nearly half a trillion dollars of their balance sheet matures in 2016, almost equivalent to a full QE program in reverse”.
“This potential 'QT' is important to their view over time. Nearer term they continue to target parity by year-end”.