24 Sep 2013
Flash: EUR/USD to hit 1.3700 in October? - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that following this decision by the Fed to postpone tapering of its QE programme, the FX market has made a turn for a weaker USD.
Key Quotes
“On a 1-3M horizon we acknowledge that delayed tapering provides a rather favourable backdrop for risk assets. With most markets having positioned for September tapering in recent months, there is likely still room for some USD longs to be wiped out.”
“We now see EUR/USD at 1.33 (previously 1.31) in 3M time but could see the pair as high as 1.37 (1.31) in 1M if early October data prove disappointing.”
“Beyond a 3M horizon, the Fed is likely to have laid out a tapering plan, which should induce a shift back in focus to the fact that the Fed will still be a first-mover on reining in easing among major central banks.”
“This should pave the way for a move in relative rates weighing on EUR and we have kept a downward profile on EUR/USD on the medium-term horizon but now see the pair at 1.30 in 6M (1.28), heading lower towards 1.27 in 12M (1.25).”
Key Quotes
“On a 1-3M horizon we acknowledge that delayed tapering provides a rather favourable backdrop for risk assets. With most markets having positioned for September tapering in recent months, there is likely still room for some USD longs to be wiped out.”
“We now see EUR/USD at 1.33 (previously 1.31) in 3M time but could see the pair as high as 1.37 (1.31) in 1M if early October data prove disappointing.”
“Beyond a 3M horizon, the Fed is likely to have laid out a tapering plan, which should induce a shift back in focus to the fact that the Fed will still be a first-mover on reining in easing among major central banks.”
“This should pave the way for a move in relative rates weighing on EUR and we have kept a downward profile on EUR/USD on the medium-term horizon but now see the pair at 1.30 in 6M (1.28), heading lower towards 1.27 in 12M (1.25).”