Forecast 2010-2011: Euro exchange rate will be unstable

Hopes for the euro growth melt

In brief: Forecast 2010-2011: The Future of the euro remains a grim backdrop to the instability of the European economy and the threat of massive defaults.

RBCCM has forecast 2010-2011 on the currency exchange rate euro. Euro still oscillates between if Offered at $ 1.2565 and bids around $ 1.2520, and at that time as a breakthrough above may be an occasion to enhance customers have received in recent days, some support in the form of a number of positive changes in the technical picture, a currency strategist RBCCM express doubts that further recovery would be significant.

The bank noted that the success of the bulls last week were more due to massive liquidation of short positions model and macro-accounts in the euro / dollar, euro / Canada and Euro / Aoussa. The process of rebalancing of positions, according to strategists may continue, but in general, already nearing completion, and elimination of bias in the positions of speculative accounts may encourage bears to resume a more active sales of the single European currency. In RBC Capital Markets adhere forecast the euro / dollar at end-September at $ 1.18, while the forecast for the end of December is $ 1.15, and at the end of March next year – $ 1.12.

Pavel Nurminen
2010-07-05 18:40, Currency news.

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