Salient to Investors:
- Strategists expect the euro to decline to $1.18 by the end of 2015. Over 90% of respondents surveyed in December predict the ECB will expand the supply of euros by purchasing sovereign bonds in 2015, versus 57% in November. 44 of 59 analysts expect the euro to fall against the dollar – the median projection sees a 2.5% decline by the end of 2015. Options premiums on the euro are the most bearish since October 2013.
- Kit Juckes at Societe General said the best thing the ECB can do is to try to engineer a weaker euro and predicts it to drop to $1.14 by end of 2015.
- Michael Sneyd at BNP Paribas expects the euro to decline to $1.15 by end of 2015.
- Jane Foley at Rabobank Intl want to see how this plays out, certainly through January, before drawing strong conclusions, and predicts the euro will end 2015 at $1.20 – so much is already in the euro price so it cannot fall much further.
- Simon Derrick at Bank of New York Mellon said the euro will fall in 2015 to reflect the economy and monetary policy.
Read the full article at http://www.bloomberg.com/news/2015-01-02/euro-forecasters-see-pain-after-worst-year-since-2005.html
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