Forex Flash: EUR/USD potential decline to 1.27 towards Q4 2013 – Scotiabank
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EUR/USD
FXstreet.com (Barcelona) - The single currency is intensifying its correction lower, falling to levels sub 1.3200 as risk aversion is picking up pace on Wednesday. The cross has climbed more than a big figure overnight, after the US Senate and the House of Representatives have passed the bill that averted the 'fiscal cliff'.
"The EUR outlook is complicated on several fronts, with typical valuation tools failing. In the end EURUSD is the combined outlook of EUR and the USD, neither of which are particularly bright. For the EUR, the biggest weight is likely to be bouts of uncertainty driven by the evolving future framework of the EMU and the complicated politics that accompanies it. The most significant risk is economic contraction; however our base case calls for modest growth in three of the four major economies, by the second half of the year", concluded C.Sutton, Chief Currency Strategist at Scotiabank.
"The EUR outlook is complicated on several fronts, with typical valuation tools failing. In the end EURUSD is the combined outlook of EUR and the USD, neither of which are particularly bright. For the EUR, the biggest weight is likely to be bouts of uncertainty driven by the evolving future framework of the EMU and the complicated politics that accompanies it. The most significant risk is economic contraction; however our base case calls for modest growth in three of the four major economies, by the second half of the year", concluded C.Sutton, Chief Currency Strategist at Scotiabank.
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