A sampling of the latest analyst views on the euro
Barclays:
No change after the Fed. "Our preference is to fade any upticks against the 1.1470 range highs and look for a move below 1.1150 to confirm downside traction towards our targets of 1.0815 and then lower towards the 1.0460 year-to-date lows."
Bank of Tokyo Mitsubishi:
They say the euro is likely to remain within a consolidation phase against the US dollar in the week ahead.
"The US dollar is likely to struggle to regain upward momentum in the near-term after the Fed signaled more caution about raising rates. Building evidence of strengthening US economic growth momentum should offer support for the US dollar although it is not yet strong enough to prompt the market to discount a faster pace of rate hikes. The US dollar already appears weak relative to yield spreads which may also help to dampen further downside in the near-term," BTMU argues.
"We continue to believe that the next likely move for the US dollar will be higher after the current period of consolidation ends," BTMU projects.
BTMU sees EUR/USD trading at a range of 1.1200-1.1550 in the near-term.
UBS:
"No one wants a strong currency but Fed Chair Yellen's comment that the "dollar's gain is a factor affecting" the economic outlook, surprised the market.. The first decent resistance is 1.1468, the mid-May high, ahead of 1.1534, the February high. Many medium-term investors are getting nervous and a run to the 200-day moving average of 1.1709 isn't unlikely ahead of the summer holidays. The dollar should eventually head higher but a wide range is likely to persist with volatile intraday moves.
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