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15 Feb 2013
Forex Flash: EUR/USD could decline to 1.27 year-end – Scotiabank
The shared currency keeps the negative tone around the mid 1.3300s on Friday, after a failed attempt to break above 1.3375/80
Weak economic fundamentals have slapped the euro in the current week, taking a toll on the cross mainly after the lackluster GDP prints in the euro zone and its members.
Camilla Sutton, Chief Currency Strategist at Scotiabank commented, “We would suggest there are limits to EUR appreciation as the fundamental economic consequences are a concern; accordingly any further upside EUR pressure will be met with stronger political commentary and pressure on the ECB to soften its stance… We hold a relatively bearish call on EUR, expecting it to close the year at 1.27”.
Weak economic fundamentals have slapped the euro in the current week, taking a toll on the cross mainly after the lackluster GDP prints in the euro zone and its members.
Camilla Sutton, Chief Currency Strategist at Scotiabank commented, “We would suggest there are limits to EUR appreciation as the fundamental economic consequences are a concern; accordingly any further upside EUR pressure will be met with stronger political commentary and pressure on the ECB to soften its stance… We hold a relatively bearish call on EUR, expecting it to close the year at 1.27”.