If you’re gonna make a call, make it a big call! I guess it’s easy for us traders to make outrageous predictions but if you’re an analyst at a major bank on a business trip visiting major customers, then it’s certainly brave to call EUR/USD at 1.60 within 12 months. I’m trying to find a link to any reports on the said analysis, but the hub of the call is that the USD will weaken as the election nears and the market is ridiculously short of EUR.
Which reminds me of Bill Evans of Westpac here in Sydney. He made a call that Australian rates must start to fall, when everybody else was calling for higher. Of course the smart-asses in the other banks said ‘ah, that’s just Bill!’. Well Bill got it 100% right and he’s now toast of the town again. Funny old game.
