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13 Mar 2015
EUR/USD parity call....June 2015 – Rabobank
FXStreet (Barcelona) - With Fed expected to start tightening in mid-year 2015, Chris Turner of Rabobank, views that EUR/USD might hit the targeted 1.00 level much earlier – probably June.
Key Quotes
“We are moving closer to the first Fed tightening since the onslaught of the global financial crisis. The FOMC meeting of 18 March should help frame expectations on whether the Fed would indeed start tightening in June as we expect.”
“We doubt that investors, speculators or corporates are prepared to stand in the way of a powerful dollar bull trend.”
“Unless the Fed surprises by suggesting that dollar strength has been sufficient to tighten monetary conditions and delay the tightening cycle (which we very much doubt), EUR/USD may well hit our year-end 1.00 target much earlier.”
“Indeed, we are bringing forward our EUR/USD parity call to June 2015 and see the low point in this cycle of 0.90 being hit summer 2016.”
Key Quotes
“We are moving closer to the first Fed tightening since the onslaught of the global financial crisis. The FOMC meeting of 18 March should help frame expectations on whether the Fed would indeed start tightening in June as we expect.”
“We doubt that investors, speculators or corporates are prepared to stand in the way of a powerful dollar bull trend.”
“Unless the Fed surprises by suggesting that dollar strength has been sufficient to tighten monetary conditions and delay the tightening cycle (which we very much doubt), EUR/USD may well hit our year-end 1.00 target much earlier.”
“Indeed, we are bringing forward our EUR/USD parity call to June 2015 and see the low point in this cycle of 0.90 being hit summer 2016.”