Investors expectations on EUR/USD are changing. These, which forecast an increase in the common currency from the beginning of the year, now expect the currency to run out of steam, according to Bloomberg.
UBS Wealth Management expected the EUR to increase, and now their forecasts are for a correction.
"The bigger part of the EUR strength is probably over, at least for the next few months," said Hefele. The usd can increase in the short term, if of course the U.S. administration can get the tax reform started.
UBS Wealth Management tells investors, that it is possible for a consolidation to occur around these levels and that after 6 months the pair will be at 1,18 again.
From the beginning of the year the common currency increased its value with 13% vs the US. However only 21 from all 109 surveyed economists expect the rate to stay at 1.20 or more till the end of the year.
ECB will meet this Thursday and most analysts expect Mario Draghi to take measures for the expensive currency.
"Nevertheless that the rate of additional increase will be taper, the EUR should be supported," said from UniCredit. They think that the currency pair will finish this year at around $1,20. From Commerzbank are taking the stance, that the common currency will lose some of its ground.
Bank of America Merrill Lynch expect the EUR to grow even more.
Bloomberg
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