Tuesday, August 2, 2011

HSBC: EUR/USD will finish the year at $1.44

Analysts at HSBC believe that the demand for US dollars won’t plunge in case the United States loses its top credit rating as there aren’t many alternatives to the world’s reserve currency.

In their view, America remains a massive and liquid market that will keep attracting investors.

The specialists note that German bunds would be suitable for replacing treasuries unless they weren’t issued in euro.  

According to HSBC’s forecast, the pair EUR/USD will finish the year at $1.44.

In the longer term, however, the analysts expect the greenback to be gradually depreciating.

daily eurusd 13-40
Chart. Daily EUR/USD

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