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27 Mar 2015
EUR/USD could test parity in 2016 – Scotiabank
FXStreet (Edinburgh) - In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, the pair could be headed for the parity level during the next year.
Key Quotes
“The core theme for Europe is that even as there are ongoing signs of improvement in bank lending, the economic landscape is soft and growth will prove modest at best. Inflationary pressures are not obvious”.
“On the back of low growth and inflation the ECB is likely to maintain extraordinarily accommodative policy for several years, keeping policy divergence a core weight against EUR”.
“Greece provides a reminder of the EMU’s vulnerability (next week an updated list of reforms is expected to be presented) and should also continue to add volatility into markets”.
“In the near-term EUR looks content to trade within a range as it searches for a near-term catalyst; however over the medium term EUR is expected to trend lower, reaching and sustaining parity in 2016”.
Key Quotes
“The core theme for Europe is that even as there are ongoing signs of improvement in bank lending, the economic landscape is soft and growth will prove modest at best. Inflationary pressures are not obvious”.
“On the back of low growth and inflation the ECB is likely to maintain extraordinarily accommodative policy for several years, keeping policy divergence a core weight against EUR”.
“Greece provides a reminder of the EMU’s vulnerability (next week an updated list of reforms is expected to be presented) and should also continue to add volatility into markets”.
“In the near-term EUR looks content to trade within a range as it searches for a near-term catalyst; however over the medium term EUR is expected to trend lower, reaching and sustaining parity in 2016”.