5 Mar 2015
EUR/USD negative bias towards 1.06 by mid-2016 – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, previews the ECB meet ahead, and further anticipates EUR/USD to head lower towards 1.06 by mid next year.
Key Quotes
“In terms of the policy detail the ECB is likely to reveal today the market is hoping for more detail on exactly when the buying will commence this month and on how it will go about its purchases in practice to ensure that it can vacuum up the required amounts each month.”
“Questions about whether limited risk sharing implies limited sharing of any profits may also be addressed.”
“In addition, revised staff estimates are also likely to show downgrades for Eurozone inflation forecasts and upgrades for growth.”
“Among these forecast revisions the outlook for 2016 and 2017 will be gleaned for any clues as to whether the ECB could adjust the end of its QE plan before or beyond next September."
“While we see scope for some USD pullbacks in the coming months we expect the medium-term trend in EUR/USD to remain bias lower towards 1.06 by the middle of next year.”
Key Quotes
“In terms of the policy detail the ECB is likely to reveal today the market is hoping for more detail on exactly when the buying will commence this month and on how it will go about its purchases in practice to ensure that it can vacuum up the required amounts each month.”
“Questions about whether limited risk sharing implies limited sharing of any profits may also be addressed.”
“In addition, revised staff estimates are also likely to show downgrades for Eurozone inflation forecasts and upgrades for growth.”
“Among these forecast revisions the outlook for 2016 and 2017 will be gleaned for any clues as to whether the ECB could adjust the end of its QE plan before or beyond next September."
“While we see scope for some USD pullbacks in the coming months we expect the medium-term trend in EUR/USD to remain bias lower towards 1.06 by the middle of next year.”