FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank notes that oil prices rise complicates the EUR outlook, and expects the EUR/USD to fall to 1.3000 by year-end.
“EUR was holding its own until the release of a disappointing set of PMIs; leaving it soft, down 0.1% into the NA open”.
“The composite Eurozone PMI fell to a six month low of 52.8, warning that the already moderate expansion in Europe is slowing”.
“Oil prices complicate the outlook for EUR, as rising oil prices will add to inflationary pressures, which should ease the disinflation burden faced by the ECB but complicate the growth outlook further”.
“We hold a yearend 1.30 EUR forecast”.