Euro Forecasts Upgraded by the Team who were Correct in Calling the EUR/USD’s Bottom in 2015
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
UniCredit Bank have announced an upgrade to their euro exchange rate forecasts, a significant call as we note the accuracy of this bank’s recent forecasts on the currency pair.
Over a year ago UniCredit Bank of Milan told clients they believed the euro had reached the bottom of the long-term downtrend it had been caught in since 2008.
The bank was an outlier in the sense that a good majority of the analyst community were still forecasting the euro to aim for parity with some big names like Goldman Sachs and Deutsche Bank expecting the euro/dollar exchange rate to reach the 0.80s.
Back in 2015 UniCredit argued that, “whichever way one cuts it - be it nominal or real rate differentials – it is very difficult to come up with ‘short-term fair values’ for EUR-USD below 1.15. We think the market has just started paying attention to this reality.”
Ultimately the call was correct as the euro has traded above 1.08 against the US dollar for the majority of the past 12 months.
So how do the sages at UniCredit see the upcoming 12 months playing out for the single currency.
In a note to clients released on the 11th of May we hear of an upgrade to the euro exchange rate complex with the bank noting a weaker US dollar outlook and a benign European Central Bank dominating as two key reasons behind their thinking.
source