Euro down 80 pips to 1.1666 today
ANZ Research discusses EUR/USD outlook andtargets the pair around 1.20 by year-end.
"Pre-election trading in EUR/USD has given a plausible indication of how the US election results may influence the dollar...Our forecasts lean towards a post-election stimulus agreement and a Biden presidency.Biden would also bring a more multi-lateral approach to trade, which would benefit the euro," ANZ notes.
"We expect the ECB to ease policy again, probably via QE, when it meets in December. However, negative inflation is keeping euro area real yields high versus the US, adding to euro strength. Verbal intervention may slow the euro's rise, but it won't reverse it.The balance of risks points to a move into a 1.20-1.25 range for EUR/USD," ANZ adds.
