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26 Mar 2013
Forex Flash: EUR/USD year-end target at 1.27 – Scotiabank
FXstreet.com (Barcelona) - The demand for the shared currency remains subdued on Tuesday, anchored around the mid 1.2800s, as the spectre of Monday’s grim comments by Eurogroup Head J.Djisselbloem is still hovering over the markets.
Against the backdrop of bigger haircuts in bank deposits, imminent capital controls and a significant test for the banking sector on Thursday, Strategist Camilla Sutton at Scotiabank suggests, “Looking ahead, problems within Europe are likely to subject deposit and bond holders to bearing an increasing burden, shifting the risks of these investments”.
“Accordingly EUR is weak on all measures, and outflows are likely to continue… We expect EUR to trend lower and hold a year-end target of 1.27”, concludes Sutton.
Against the backdrop of bigger haircuts in bank deposits, imminent capital controls and a significant test for the banking sector on Thursday, Strategist Camilla Sutton at Scotiabank suggests, “Looking ahead, problems within Europe are likely to subject deposit and bond holders to bearing an increasing burden, shifting the risks of these investments”.
“Accordingly EUR is weak on all measures, and outflows are likely to continue… We expect EUR to trend lower and hold a year-end target of 1.27”, concludes Sutton.