BNP Paribas sees no prospects for the dollar exchange rate growth

BNP Paribas has lowered the forecast for the dollar against the euro

In brief: BNP Paribas offers investors to sell dollars and buy euros. The dollar exchange rate remains stable.

BNP Paribas has lowered forecasts for the dollar against the euro against the background of the negative prospects for the U.S. economy made by the Fed, as well as the positive expectation of the results of stress tests of European banks.

Fed chief Ben Bernanke said July 21 that the prospects for the U.S. economy looks very uncertain. Beginning in June, housing construction fell to its lowest level since October. Consumer confidence in July also decreased. BNP Paribas forecasts that in the 3 rd quarter of this year, the euro / dollar will trade at 1.20. The previous forecast was at 1.16. Forecast for 1 st quarter of next year was changed from parity to 1.12. “The prospect of a new phase of quantitative easing in the U.S. will restrain the growth of the dollar”, – says Hans-Guenter Redeker, head of currency strategy at BNP Paribas in London.

Ukrainian Globalist
2010-07-23 08:55, Currency news.

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