It may take a while for markets to settle, but analysts at ANZ Research still stands for euro depreciation in the coming months. The outlook for euro area growth is deteriorating sharply, and reflationary policy tools are limited. Key quotes “The euro area is very exposed to downturns in global trade. Domestic demand will also weaken. We have cut our EA 2020 GDP forecast to 0.2%. Disinflationary pressures will intensify.” “We anticipate only limited cuts to the deposit rate (20bps to -0.70%). Targeted measures to support credit availability are likely, while a temporary, reluctant increase in QE purchases from EUR20bn to EUR30bn per month can’t be ruled out. “In the short term, adjusting to recent financial movements and the desire among policymakers to contain volatility could leave EUR/USD becalmed. However, the US is better equipped economically to respond to the current crisis. Whilst interest rate support for the USD has been eroded, the growth outlook is better. We forecast US growth will rise by 1.5% this year vs 0.2% in the euro area.” “Owing to the better US growth outlook and policy optionality, we expect that the EUR’s depreciation will resume in time.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD advances to YTD highs near 1.1280 FX Street 3 years It may take a while for markets to settle, but analysts at ANZ Research still stands for euro depreciation in the coming months. The outlook for euro area growth is deteriorating sharply, and reflationary policy tools are limited. Key quotes “The euro area is very exposed to downturns in global trade. Domestic demand will also weaken. We have cut our EA 2020 GDP forecast to 0.2%. Disinflationary pressures will intensify.” “We anticipate only limited cuts to the deposit rate (20bps to -0.70%). Targeted measures to support credit availability are likely, while a temporary, reluctant increase in QE purchases from EUR20bn… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
