Sunday, July 24, 2011

UniCredit: optimistic outlook for EUR/USD

Currency strategists at UniCredit claim that the single currency gained 335 pips versus the greenback having risen from Monday’s minimum of $1.4014 to Thursday’s maximum of $1.4434.

The specialists claim that though EUR/USD may now consolidate a bit the odds of its slump below $1.40 from the technical point of view have decreased as the pair has strengthened its base.

According to the bank, euro is likely to gain when US monetary authorities lift up the debt ceiling at last encouraged by the stock markets.

As a result, assuming that the risk sentiment remains positive enough, the analysts expect that the European currency may reach the target for the third quarter at $1.46 earlier than they had projected.

daily eurusd 19-02

Chart. Daily EUR/USD

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