FXStreet (Edinburgh) – In light of the Non-farm Payrolls due on Friday, Senior Currency Strategist at Rabobank Jane Foley, still expects the pair to grind lower towards 1.06 by end 2015.
Key Quotes
“Without more structural reform in the region’s largest economies the risk is that the Eurozone economy could continue to perform below potential for a prolonged period”.
“The fact that the recent uptick in Eurozone inflation is being led by higher input costs which could eat into consumers’ incomes, is another reason for the ECB is likely to again dismiss any discussion about an early end to its asset purchases policy”.
“At the end of the week, the release of official US labour data will bring more colour to the ongoing debate about the likely timing of the first Fed interest rate hike”.
“For some time we have argued that a Fed move is unlikely before December and, as things stand, we remain comfortable with this view”.
“By the end of this year we therefore expect that the Fed will have initiated a gently monetary policy tightening while the ECB are likely to be still be purchasing assets. Against this backdrop we expect EUR/USD to head towards 1.06 on a 6 mth view”.
(Market News Provided by FXstreet)