Back
6 Nov 2015
EUR/USD: parity may be further away than it appears - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that the strength of the US October labour market report has convinced many doubters that the Federal Reserve has sufficient ammunition to raise interest rates at next month’s policy meeting.
Key Quotes:
"EUR/USD plunged to its lowest level since April on the back of the data which included not just a strong headline number for payrolls but strength in earnings and a drop in the jobless rate."
"The move has caused us to reassess our medium-term target for the currency pair which for some time we have maintained at 1.05."
"While it appears that this target could be hit far sooner than we had been predicting, there is every reason to suspect that the move in EUR/USD over the next few months will not be linear and that parity in EUR/USD could still be further away than it currently appears."
Key Quotes:
"EUR/USD plunged to its lowest level since April on the back of the data which included not just a strong headline number for payrolls but strength in earnings and a drop in the jobless rate."
"The move has caused us to reassess our medium-term target for the currency pair which for some time we have maintained at 1.05."
"While it appears that this target could be hit far sooner than we had been predicting, there is every reason to suspect that the move in EUR/USD over the next few months will not be linear and that parity in EUR/USD could still be further away than it currently appears."