Wells Fargo - Turning Less Negative On The Euro

Wells Fargo - "The euro has extended its gains in early 2013, reaching its highest level since late 2011. An ongoing improvement in Eurozone bond markets and a shift in the European Central Bank’s rhetoric have driven the euro higher, and are also factors that have reduced our medium term pessimism on the single currency. The underlying Eurozone economic performance remains weak however and does not, in our opinion, naturally lend itself to a sizeable build-up in euro long positions. As a result we still expect the euro to soften over time, although it will probably take a relapse in the economic data or a return to dovish central bank rhetoric for such a decline to occur. We see the euro as little changed at $1.35 in three months, and gradually sliding to $1.28 in twelve months. As a result, we still view the euro’s current levels as a selling opportunity."


Forecast EUR/USD
3-month 6-month 9-month 12-month 15-month 18-month
1.3500 1.3300 1.3000 1.2800 1.2700 1.2700

Views: 72

Tags: EUR, EUR/USD, EURUSD, Euro, Wells Fargo

Comment by Rakesh Kumar on February 5, 2013 at 1:37am

Do you still see EUR going down. I thought its heading up towards 1.4000 level and since it has broken the 3 major resistances. Of course there will be some corrections aswell but i think finally thats where its destiny is.....1.4000

Comment by Francesc Riverola on February 5, 2013 at 8:21am

Hi Rakesh... you know that I do not trade but if you want my opinion, I do not think the fundamentals back up an EURUSD above 1.40 but the US has printed so much greenbacks that its value is decreasing fast. My bet is that it could perfectly go above 1.40 but I rather see things like Wells Fargo... hope it helps ;)

Comment by Rakesh Kumar on February 5, 2013 at 9:51am

Thanks for the response. What do you think about NZDUSD mate as Some analyst says that NZDUSD is overbought now and should come down to 8000 level. lot of people are still selling NZDUSD including me.

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