26 Jan 2015
EUR/USD short-term forecast lowered to 1.10 - UBS
FXStreet (Córdoba) - The UBS analyst team lowered its short-term forecast for EUR/USD to 1.1000 in the light of recent ECB action and Greek elections. According to UBS, it will be interesting to see how the committee responds to the ECB recently announced QE and the continued fall in US long-term treasury yields.
Key Quotes
“The US Federal Open Market Committee meeting on Wednesday will be the highlight of the week. We do not expect any major changes to policy, which gives more credence to the assumption that rates will normalize in 2H2015”.
“It will be interesting to see how the committee responds to the European Central Bank's (ECB) recently announced quantitative easing and the continued fall in US long-term treasury yields”.
“In terms of data, the first print of 4Q14 GDP will be watched closely as both 2Q and 3Q data have surprised on the upside. Markets are expecting a 3.2% increase. While expectations are high, the actual outcome is unlikely to be so weak as to shift the medium-term expectations of the US Federal Reserve”.
“In Europe, the aftermath of the historic easing from the ECB and Greek elections will keep markets on their toes. We recently changed our short-term forecast for EUR/USD to 1.10 to reflect those dynamics”.
Key Quotes
“The US Federal Open Market Committee meeting on Wednesday will be the highlight of the week. We do not expect any major changes to policy, which gives more credence to the assumption that rates will normalize in 2H2015”.
“It will be interesting to see how the committee responds to the European Central Bank's (ECB) recently announced quantitative easing and the continued fall in US long-term treasury yields”.
“In terms of data, the first print of 4Q14 GDP will be watched closely as both 2Q and 3Q data have surprised on the upside. Markets are expecting a 3.2% increase. While expectations are high, the actual outcome is unlikely to be so weak as to shift the medium-term expectations of the US Federal Reserve”.
“In Europe, the aftermath of the historic easing from the ECB and Greek elections will keep markets on their toes. We recently changed our short-term forecast for EUR/USD to 1.10 to reflect those dynamics”.