EUR/USD to remain more or less flat in Q3 - Barclays
|The Barclays Research Team expect the EUR/USD pair to trade neutral to lower in the coming months amid tempered expectations of aggressive rate cuts.
Key Quotes:
“Expect a more or less flat EUR/USD the next quarter ahead.
EUR/USD to move towards 1.08 by Q2 2020 vs. 1.06 previous forecast.
Expect the Fed to ease in the face of persistently low inflation, sizeable external risks and moderation of US growth.
The intensity of cuts and the risks to the path have moderated.
Indefinite suspension of further US tariffs and technology sanctions on China - and likely retaliation - imply a modestly better growth path for both economies and for connected trading partners, reducing risks to the global economy.
We now see a more persistent but shallower path of USD appreciation, as there is a less negative bite from US interest rates in the near term and less of a rise in non-US risk premia, given the improved global outlook".
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.