Friday, July 15, 2011

Wells Fargo: medium-term outlook for EUR/USD

One more medium-term forecast from analysts at Wells Fargo. In their view, the single currency will fall into the steady weakening pattern versus the greenback.

As the main factors generating negative pressure on euro’s rate the specialists cite euro zone’s slow economic growth (as one may see from the leading indicators) and the increasing likelihood of ECB pausing its monetary tightening.

Wells Fargo expects the pair EUR/USD to stay in range between $1.4100 and $1.4200 during the coming 3 months, then to drop to $1.4000 in the last quarter and slide to $1.3500 by the middle of the next year and to $1.3000 by the end of 2012.

daily eurusd 15-18

Chart. Daily EUR/USD

writed by FBS Holdings © 2011