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23 Jan 2015
HSBC: What’s in for EUR after ECB meeting – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares HSBC outlook on the EUR post the ECB’s decision to implement QE, with HSBC anticipating EUR/USD to finish 2015 at 1.09.
Key Quotes
“By rights, some of the ECB’s action should already be in the price of EUR-USD, which has fallen from 1.40 since hints of QE by the ECB became more blatant since mid-2014. It discourages us from embracing the more sensationalist forecasts of parity for EUR-USD, for example.”
“It has been all about the EUR so far, but once you get below 1.10 then the implications for the US economy start becoming dominant and there could be some US policy push back against excessive USD strength.”
“Nonetheless, for now, the size of the package and the possibility that it could be extended until the inflation mandate is met should mean the EUR continues to come under pressure.”
“We look for EUR-USD to finish 2015 at 1.09 compared to our previous forecast of 1.15”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“By rights, some of the ECB’s action should already be in the price of EUR-USD, which has fallen from 1.40 since hints of QE by the ECB became more blatant since mid-2014. It discourages us from embracing the more sensationalist forecasts of parity for EUR-USD, for example.”
“It has been all about the EUR so far, but once you get below 1.10 then the implications for the US economy start becoming dominant and there could be some US policy push back against excessive USD strength.”
“Nonetheless, for now, the size of the package and the possibility that it could be extended until the inflation mandate is met should mean the EUR continues to come under pressure.”
“We look for EUR-USD to finish 2015 at 1.09 compared to our previous forecast of 1.15”
This content has been provided under specific arrangement with eFXnews.