USD strength to continue - Commerzbank

By FXstreet.com | August 04, 2014 AAA

FXStreet (Córdoba) - Lutz Karpowitz, analyst at Commerzbank noted that low inflation in the euro area supports the downward movement in EUR/USD and thus making them lower their year-end forecast to 1.3200.

Key Quotes

"Despite good macro data, the Fed still hesitates to act. USD strength is therefore muted
but should last correspondingly longer. Low inflation in the euro area supports the
downward movement in EUR/USD".



"But the Fed’s hesitation is, at the same time, an argument suggesting that EUR/USD still has
considerable downside potential. For as long as the Fed does not obviously prepare the market for rate hikes, there is still a risk that it will actually do nothing".



"When this risk is priced out, the USD should continue to rise. For this reason we have reduced our forecast for the year-end to 1.32".



comments powered by Disqus
Related Forex Analysis
  1. EUR/USD keeps the 1.2650 area
    Forex News

    EUR/USD keeps the 1.2650 area

  2. SEB: EUR/USD temporary bounce from support - eFXnews
    Forex News

    SEB: EUR/USD temporary bounce from support - eFXnews

  3. US yields may soon be on the rise again - BTMU
    Forex News

    US yields may soon be on the rise again - BTMU

  4. Credit Agricole: EUR/USD sensitivity to risk appetite could return - eFXnews
    Forex News

    Credit Agricole: EUR/USD sensitivity to risk appetite could return - eFXnews

  5. EUR/USD Continues to Meander
    Investing

    EUR/USD Continues to Meander

Trading Center