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23 Jun 2015
EUR/USD 6 month target 1.0600 - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that a factor that supports a more moderate pace of downside potential for EUR/USD in the coming months is the relatively firmer tone of Bund yields relative to the April low.
Key Quotes:
"The introduction of QE by the ECB and the resultant downward pressure on yields forces many investors to look outside of the Eurozone for higher yields."
"Higher Bunds yields will dilute this trend as will the fact that political uncertainties have risen in CEE markets such as both Poland and Turkey."
"Just as there would appear to be less compelling reason to lengthen USD longs, the reason to aggressively shorten EUR position have also lessened."
"Our long standing 6 mth target for EUR/USD stands at 1.06, we currently see upside risks to this forecast."
Key Quotes:
"The introduction of QE by the ECB and the resultant downward pressure on yields forces many investors to look outside of the Eurozone for higher yields."
"Higher Bunds yields will dilute this trend as will the fact that political uncertainties have risen in CEE markets such as both Poland and Turkey."
"Just as there would appear to be less compelling reason to lengthen USD longs, the reason to aggressively shorten EUR position have also lessened."
"Our long standing 6 mth target for EUR/USD stands at 1.06, we currently see upside risks to this forecast."