15 Nov 2013
Flash: EUR/USD should head towards 1.20 - RBS
FXstreet.com (Barcelona) - We are back on the long and winding road towards a stronger dollar, notes Kit Juckes, FX Strategist at Societe Generale.
Key Quotes
"The US economy weathered the Federal shut-down surprisingly well and while that doesn't make a December taper likely, it is only a question of ‘when' not if the Fed removes some stimulus."
"A reformulation of the forward guidance - with more dovish thresholds - will slow dollar gains but the contrast between the Fed exit and pressure on the ECB and BOJ to ease further is still there."
"EUR/USD should now head towards 1.20, over the next couple of years. I'm moving my selling levels from 1.35-1.40 to 1.35."
Key Quotes
"The US economy weathered the Federal shut-down surprisingly well and while that doesn't make a December taper likely, it is only a question of ‘when' not if the Fed removes some stimulus."
"A reformulation of the forward guidance - with more dovish thresholds - will slow dollar gains but the contrast between the Fed exit and pressure on the ECB and BOJ to ease further is still there."
"EUR/USD should now head towards 1.20, over the next couple of years. I'm moving my selling levels from 1.35-1.40 to 1.35."