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28 Jan 2015
EUR/USD at 1.08 by end of Q1 - Nomura
FXStreet (Bali) - The EUR downtrend is likely to continue, notes Nomura, expecting a target of 1.08 by the end of Q1, while calling for 1.05 at year-end (revised from 1.12).
Key Quotes
"In relation to the euro, there have been three pieces of news that help explain why the euro has suddenly embarked on a faster paced broad decline: 1) ECB QE; 2) changed behavior among global reserve managers; and 3) fresh uncertainty around Greece."
"We address these important shifts below, and argue that the EUR downtrend is likely to have further to run and a trade-weighted basis. In relation to EURUSD, we now think a target of 1.08 is realistic by end-Q1, and we revise our end-2015 EURUSD target to 1.05 from 1.12. We make similar downgrades to our EUR forecast versus GBP, JPY and CHF."
Key Quotes
"In relation to the euro, there have been three pieces of news that help explain why the euro has suddenly embarked on a faster paced broad decline: 1) ECB QE; 2) changed behavior among global reserve managers; and 3) fresh uncertainty around Greece."
"We address these important shifts below, and argue that the EUR downtrend is likely to have further to run and a trade-weighted basis. In relation to EURUSD, we now think a target of 1.08 is realistic by end-Q1, and we revise our end-2015 EURUSD target to 1.05 from 1.12. We make similar downgrades to our EUR forecast versus GBP, JPY and CHF."