Forex Flash: EUR/USD could hit 1.400 in 2013 – ANZ

FXstreet.com (Barcelona) - It is encouraging that 2013 has begun without forecasts of a break-up of the euro taking center stage. According to the ANZ Research Team, "This more optimistic assessment owes everything to the politically inspired reforms over the past couple of years, the pro-active stance from the ECB and the resolve being shown at national levels to budgetary improvement and restructuring."

As a central case view, "we expect this momentum to continue and to be visible in a re-weighting of risk appetite towards the euro. During 2013, this should be reflected in narrower intra-regional bond spreads, firmer equity markets and a gradual appreciation in EURUSD above 1.4000. This would be consistent with a normalization in the exchange rate in line with our cyclical fair values estimates for the currency." the team posits.