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. Markets Brace for More Volatility on ECB TLTRO, Scotland Referendum
    Forex News

    Markets Brace for More Volatility on ECB TLTRO, Scotland Referendum

  2. USD/JPY unstoppable; 109.00 within reach
    Forex News

    USD/JPY unstoppable; 109.00 within reach

  3. British Pound: Scottish Vote is Close and FX Traders are Nervous
    Forex News

    British Pound: Scottish Vote is Close and FX Traders are Nervous

  4. EUR/USD on mend, but sky is still clouded
    Forex News

    EUR/USD on mend, but sky is still clouded

  5. Asia Recap: Focus shifted to Scottish vote
    Forex News

    Asia Recap: Focus shifted to Scottish vote

Trading Center