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7 Mar 2014
Flash: Could EUR/USD get down to 1.20 within 12 months? - Danske Bank
FXStreet (Barcelona) - Morten Helt, Senior Analyst at Danske Bank feels that FX markets will digest the hawkish statement from the ECB yesterday.
Key Quotes
“We have already seen a broad appreciation of the euro – in particular EUR/USD has moved above 1.38 for the first time since December – and we will probably see further short-term support to the euro. In particular, we might see an unwinding of both speculative and hedging related short EUR/USD positions.”
“With no obvious change in rhetoric and no hints of concrete further easing measures in the statement from the ECB, it now appears less likely that we will get the downside to rates needed to drive EUR/USD to the mid 1.20s in 12M.”
Key Quotes
“We have already seen a broad appreciation of the euro – in particular EUR/USD has moved above 1.38 for the first time since December – and we will probably see further short-term support to the euro. In particular, we might see an unwinding of both speculative and hedging related short EUR/USD positions.”
“With no obvious change in rhetoric and no hints of concrete further easing measures in the statement from the ECB, it now appears less likely that we will get the downside to rates needed to drive EUR/USD to the mid 1.20s in 12M.”