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5 May 2015
EUR/USD could reach parity by year-end – BAML
FXStreet (Edinburgh) - In the opinion of Athanasios Vanvakidis, Analyst at BAML, the pair’s downside could reach parity level by the end of 2015.
Key Quotes
“Despite more balanced risks than before, we remain bearish EUR/USD for the rest of the year, as monetary policies diverge”.
“We expect EUR/USD to gradually weaken to parity by the end of this year”.
“The path could be more volatile than our baseline projections suggest”.
“A lot will also depend on whether the market starts expecting more ECB QE for 2016, or not, which in turn depends on inflation leading indicators and expectations”.
“If US data does not improve in the months ahead, the Fed may not hike rates at all this year. On the other hand, Greek risks pose negative EUR risks”.
Key Quotes
“Despite more balanced risks than before, we remain bearish EUR/USD for the rest of the year, as monetary policies diverge”.
“We expect EUR/USD to gradually weaken to parity by the end of this year”.
“The path could be more volatile than our baseline projections suggest”.
“A lot will also depend on whether the market starts expecting more ECB QE for 2016, or not, which in turn depends on inflation leading indicators and expectations”.
“If US data does not improve in the months ahead, the Fed may not hike rates at all this year. On the other hand, Greek risks pose negative EUR risks”.