1
990
Danske Bank is the 3rd bank estimating the EUR/USD to be around 1.02 - 1.04 at year-end. This bank explained it by 3 reasons:
- "Firstly, the Greek contingent deal implies that the saga continues. Grexit
risks are reduced for now but could return if the Greek authorities
fail to implement the deal or future programme assessments are
unsuccessful."
- "Secondly, the Greek deal opens the door for other central banks to act. We expect the Fed to begin its rate hiking cycle in September, which should widen US/eurozone short-term interest rates – a historical driver of EUR/USD."
- "Thirdly, reduced Greek risk should support a rally in European equities."
Anyway, as we see from the chart above, 1.04 is the real target for EUR/USD at year-end (and it is nearest support level on the long term situation).
And we see same target as 1.04 on weekly chart, and this level is March this year low.
Thus, this 1.04 (or 1.02) is not extraordinary target in our case.
