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20 Mar 2015
EURUSD revised lower to 1.00 from 1.05 - BNP
FXStreet (Bali) - BNP has revised their Q4 ‘15 EURUSD forecast to 1.00 from 1.05, adding that EURUSD is likely to trough at 0.95 in Q2 ’16 and then recover.
Key Quotes
"The FOMC has a new reaction function when it comes to the USD, with increased sensitivity stemming from caution on the low level of inflation. This places inflation data – and everything that influences it – squarely in the spotlight."
"Any continued decline in the unemployment rate will be key. The policy divergence story remains in the dollar’s favour and we have revised our EURUSD forecasts lower to 1.00 for year-end (from 1.05) and expect the pair to trough at 0.95 in Q2 2016 before turning in H2 2016."
"We closed our long USDJPY position at 119.30 for a 1.3% gain when the pair hit our trailing stop post-FOMC, and re-entered at 120.50, targeting 125 with a 118.50 stop. We also stay long USDCHF via options."
Key Quotes
"The FOMC has a new reaction function when it comes to the USD, with increased sensitivity stemming from caution on the low level of inflation. This places inflation data – and everything that influences it – squarely in the spotlight."
"Any continued decline in the unemployment rate will be key. The policy divergence story remains in the dollar’s favour and we have revised our EURUSD forecasts lower to 1.00 for year-end (from 1.05) and expect the pair to trough at 0.95 in Q2 2016 before turning in H2 2016."
"We closed our long USDJPY position at 119.30 for a 1.3% gain when the pair hit our trailing stop post-FOMC, and re-entered at 120.50, targeting 125 with a 118.50 stop. We also stay long USDCHF via options."