8 Apr 2015
More downside for the yen than for the euro - Capital Economics
FXStreet (Bali) - Capital Economics expects both the euro and the yen to depreciate against the dollar in coming months, with the latter falling much further.
Key Quotes
"With the ECB and the Bank of Japan (BoJ) both implementing large scale QE programmes, and the Fed still likely to announce its first rate hike later this year, we expect both the euro and the yen to depreciate against the dollar in the coming months."
"But we think the yen will fall much further than the euro. Our forecasts are for the Japanese currency to weaken by 17%, to ¥140 per dollar, by year-end and for the euro to depreciate by around 8%, to parity against the dollar."
Key Quotes
"With the ECB and the Bank of Japan (BoJ) both implementing large scale QE programmes, and the Fed still likely to announce its first rate hike later this year, we expect both the euro and the yen to depreciate against the dollar in the coming months."
"But we think the yen will fall much further than the euro. Our forecasts are for the Japanese currency to weaken by 17%, to ¥140 per dollar, by year-end and for the euro to depreciate by around 8%, to parity against the dollar."