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12 Mar 2015
EUR/USD potential test of parity by mid-year – Westpac
FXStreet (Edinburgh) - In the view of Strategist Richard Franulovich at Westpac, the pair could attempt a visit to the parity level by the mid of the present year.
Key Quotes
“EUR looks very wounded here as both cyclical and structural forces continue to weigh”.
“Pockets of better data (especially business surveys) in response to the sharp easing in Eurozone financial conditions will likely prove to be nothing more than opportunities to sell EUR, as policy differentials continue to swing in the USD’s favour and net fixed income outflows pick up pace”.
“Would watch 10yr bund yields for near term direction. Price action of late suggests concerns about lopsided positions are overdone with EUR/USD seemingly intent on testing parity before mid-year”.
Key Quotes
“EUR looks very wounded here as both cyclical and structural forces continue to weigh”.
“Pockets of better data (especially business surveys) in response to the sharp easing in Eurozone financial conditions will likely prove to be nothing more than opportunities to sell EUR, as policy differentials continue to swing in the USD’s favour and net fixed income outflows pick up pace”.
“Would watch 10yr bund yields for near term direction. Price action of late suggests concerns about lopsided positions are overdone with EUR/USD seemingly intent on testing parity before mid-year”.