I’ve just finished reading an extensive and very interesting analysis of the present state of the FX and equity markets by a major international bank and their conclusions are quite stunning:
- Taking a line through CNY/JPY and the Fed funds rate, USD/JPY will be trading around 60/65 in the next 18 months
- Based on historical analysis of similar market developments, EUR/USD could reach 1.95 (or USD/DEM parity!)
- US equity markets are due for another shake-out over the next 3 years
What I will say in this banks favour is that they are least gutsy enough to put actual targets on their analysis rather than the usual “I think it goes up but it might go down” rubbish which most cowardly analysts publish.
