17 Nov 2015
EUR/USD forecast: eyes on ZEW – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The persistent offered tone around the single currency has confined EUR/USD back below he 1.07 handle on Monday, ahead of November’s ZEW Survey due later.
“We look for a temporary break below the March low at 1.0458 in December, forecasting EUR/USD at 1.04 in 1M (previously 1.10). We do not think the cross is headed for parity and we see little potential for the market to price sustained divergence in Fed-ECB policy beyond December and we target 1.06 in 3M (from 1.08)”, suggested analysts at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “is back under pressure and we look for losses to the 1.0520, the April low and the 1.0457 March low. Last weeks consolidation has proved to be tepid at best and while capped by the 1.0835 accelerated downtrend will remain directly offered”.
“We look for a temporary break below the March low at 1.0458 in December, forecasting EUR/USD at 1.04 in 1M (previously 1.10). We do not think the cross is headed for parity and we see little potential for the market to price sustained divergence in Fed-ECB policy beyond December and we target 1.06 in 3M (from 1.08)”, suggested analysts at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “is back under pressure and we look for losses to the 1.0520, the April low and the 1.0457 March low. Last weeks consolidation has proved to be tepid at best and while capped by the 1.0835 accelerated downtrend will remain directly offered”.