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Union Bank of Switzerland’s analysis team us advising against fighting this latest euro fall under the current circumstances.

Key Quotes

“We expect this trend to reverse somewhere above EUR/USD 1.10 and do not expect 1.10 to be broken.”

“Further out, we are bullish on the euro, both if Eurozone economy starts to recover from its current weakness and if the risk case of a more serious downturn materializes, because in the latter case the US Fed has scope to cut rates and the ECB has limited ammunition to ease further.”

“We forecast EUR/USD at 1.15 over six months and 1.20 over 12 months.”