8 Apr 2015
EUR/USD might see parity by March 2016 – SG
FXStreet (Barcelona) - The Research Team at Societe Generale expects EUR/USD to weaken further in 2015, and reach parity by March 2016.
Key Quotes
“…our FX strategists expect the EUR/USD to depreciate further in 2015, and reach parity by March 2016.”
“How this impacts equity markets will depend on the dominant force behind the fall in the currency. The weaker euro and lower rates resulting from ECB policy should benefit international companies. But if the euro’s depreciation is driven by the perception of heightened political risk, stocks could be negatively impacted.”
“The recent rise in eurozone implied equity volatility in March could accelerate if Grexit fears intensify. Grexit or not, further progress on euro area integration and governance is needed to go from a fixed currency system to a “Genuine Economic and Monetary Union” and reassure investors about the region’s long-term prospects.”
Key Quotes
“…our FX strategists expect the EUR/USD to depreciate further in 2015, and reach parity by March 2016.”
“How this impacts equity markets will depend on the dominant force behind the fall in the currency. The weaker euro and lower rates resulting from ECB policy should benefit international companies. But if the euro’s depreciation is driven by the perception of heightened political risk, stocks could be negatively impacted.”
“The recent rise in eurozone implied equity volatility in March could accelerate if Grexit fears intensify. Grexit or not, further progress on euro area integration and governance is needed to go from a fixed currency system to a “Genuine Economic and Monetary Union” and reassure investors about the region’s long-term prospects.”