Danske and Commerzbank Present Expectations for EUR/USD
FXstreet.com reported on 18 September 2012 that the euro was declining, with thin trade as well as mixed results of the German/EMU and ZEW surveys weighing on the single European currency, preventing the EUR/USD from gathering pace. According to Bloomberg data, the euro dropped 0.4 percent to $1.3063 in New York after appreciating to as much as $1.3172 on September 17, or the strongest level since May 4.
J. P. Sorensen, chief analyst at Danske Bank (CPH:DANSKE, PINK:DNSKY) noted that the effects of further quantitative easing announced by the US Federal Reserve were already fading away. Yet, as quoted by FXStreet, Mr Sorensen points out that the Fed announcement in combination with the rescue plan of the European Central Bank (ECB) was a “game changer” for the greenback, and as a consequence, Danske Bank revised its EUR/USD forecast profile higher, as noted in the FXStreet.com article.
K. Jones, expert at the German Commerzbank (ETR:CBK, FRA:CBK, PINK:CRZBY), on the other hand expects buyers to stick around as long as the market keeps trading EUR/USD above 1.2829. “A move above 1.3180 will see an additional target of 1.3483/1.3540 engage”, he adds, as quoted by FXStreet.