National Australia Bank (NAB) comments on the EUR/USD:
- Divergence in economic paths and monetary policies between the U.S. and elsewhere can’t be doubted (Federal Reserve, ECB and BOJ communication, softening U.K. data, and deteriorating N.Z. terms of trade among factors reinforcing divergence view,)
- Is the major driver of higher USD forecasts
NAB have re-entered a EUR/USD short at 1.2435 after U.S. jobs data
- Stop-loss at 1.2825
They have raised their forecast for the USD through until end-2016:
- EUR/USD end-December target to 1.22 from 1.26 previously, 1.18 by end-March instead of 1.25
- NZD/USD forecast to 0.70 by end-2015 instead of 0.73 and drop to 0.66 by end-2016, from 0.68 previously
- USD/JPY projections to 123 from 117 by end-2015 and 125 from 120 by end-2016
–
NAB via Bloomberg.
