FX Forecast Update

Struggling between greed and fear

Tue, May 6 2008, 14:51 GMT
by John Hydeskov

Danske Bank A/S


Summary •

  • We have adjusted our EUR/USD forecast downwards and now expect the cross to trade at 1.55 in 3M and 1.50 in 6M •

  • We still expect JPY strength going forward and see USD/JPY at 102 and 100 in 3M and 6M. EUR/CHF is also likely to turn lower, we expect 1.58 in 3M and 1.56 in 6M •

  • We believe EUR/GBP will remain elevated over the coming three to six months before turning lower •

  • NOK and SEK have good potential against EUR, while we expect AUD and NZD to underperform relative to USD •

  • We expect USD/CAD to trade around parity

Danske Bank  | Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com

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This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

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