EUR/USD looks to be around fair value - JPMorgan

By FXstreet.com | August 14, 2014 AAA

FXStreet (Bali) - At current levels of 1.33-1.34, when compared to its underlying drivers, EUR/USD looks to be around fair value, notes FX Strategists at JP Morgan.



Key Quotes



"At current levels of 1.33-1.34, EUR/USD looks to around fair value versus its underlying drivers like short-end rate spreads, peripheral spreads and equity volatility."



"Risks are balanced into year-end. Downside (below 1.30 this year) requires a more substantial rise in US 2-yr yields beyond JPM’s target of 0.9%, but the Fed would need to pull forward its guidance to trigger that large a move."



"A much higher EUR/USD (beyond 1.36) would require a softer US economy or decline in US inflation, which also seem like low-odds events."



comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  3. US Session recap: USD consolidation ahead of FOMC
    Forex News

    US Session recap: USD consolidation ahead of FOMC

  4. A market in a technical snap-shot - RBS
    Forex News

    A market in a technical snap-shot - RBS

  5. EZ gave mixed data at key timings - BBH
    Forex News

    EZ gave mixed data at key timings - BBH

Trading Center