JPM cite the weaker European economy and coronavirus for curring its euro forecast, and add in post-Brexit trade talk concerns re GBP.
EUR/USD end 2020 forecast 1.11
- from 1.14
- say a fall to 1.08 possible during the year
- Investor confidence in Europe especially susceptible to coronavirus impacts - euro-area economy has been unduly sensitive to other global shocks
GBP/USD year end forecast 1.30
- from 1.33
- Q1 forecast 1.27 (from 1.32)
- GBP beholden to an uncertain set of negotiations - will inevitably create noise and the risk of intermittent downside
JPM note info via Bloomberg