Angus Campbell, senior market strategist at FxPro believes that the outlook for euro looks bleak, but doesn’t necessarily believe that parity is inevitable.
Year end parity forecasts being revised?
Economist Bill Hubard commented that a number of major firms that were starting to quote parity by the end of the year have now revised their views to USD1.05-06. Campbell replied that the situation is complicated, and any number of factors are in play. However, he feels that absent a total collapse, that parity remains a tough call to make.
Multiple factors weighing on Euro right now
Campbell continues, commenting on how the future for EUR/USD doesn’t look that bright, with a number of factors including Greece, the EUR/JPY market and the ECB inflation verdict all resulting in the EUR/USD moving closer to parity.