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14 Jan 2015
EUR/USD might make a move towards 1.10 – DB
FXStreet (Barcelona) - According to Deutsche Bank, break of the six-year range in EUR/USD suggests that the pair might make a downward move towards 1.10 levels through 2015.
Key Quotes
“The euro has finally broken out of its six year range versus the dollar. We believe this marks the beginning of a major breakout and foresee a move down to at least 1.10 over the course of the year.”
“On the monetary policy front we expect ECB QE to have a remarkably persistent and powerful effect on the euro: negative rates, a small bund free float and record rate differentials versus the US should all lead to the persistence of the very large fixed income outflows that are already underway.”
“To boot, Greek risks loom large, with uncertainty unlikely to be resolved until well into Q2.”
“In the meantime, US portfolio inflows are finally showing signs of life, with the current run-rate suggesting that the basic balance could turn positive by the end of this year.”
Key Quotes
“The euro has finally broken out of its six year range versus the dollar. We believe this marks the beginning of a major breakout and foresee a move down to at least 1.10 over the course of the year.”
“On the monetary policy front we expect ECB QE to have a remarkably persistent and powerful effect on the euro: negative rates, a small bund free float and record rate differentials versus the US should all lead to the persistence of the very large fixed income outflows that are already underway.”
“To boot, Greek risks loom large, with uncertainty unlikely to be resolved until well into Q2.”
“In the meantime, US portfolio inflows are finally showing signs of life, with the current run-rate suggesting that the basic balance could turn positive by the end of this year.”