| Videos | Channels | Search |
Euro dollar: Why 1.26 is in our sights
Federal Reserve rhetoric will square up to mounting political risk in Europe and trigger a move lower in the Euro-dollar.
This week Ben Bernanke addresses Congress and is set to outline his position on the US economy. Investors around the world are looking for further signals as to when the central bank will begin to taper its quantitative easing programme.
Over the Atlantic, traders are focusing on increasing political risk. Portugal and Spain need to install new senior parliamentary figures, whereas Germany is set to vote for a new chancellor.
Pitted against each other, Saxobank’s traders think the greenback will win in the short term and that euro-dollar is heading lower in the coming weeks with calls ranging from 1.26 to 1.30.
Other banks, including UBS and HSBC agree that a move lower is coming. But not all the banks agree. Barclays thinks euro-dollar will hit 1.32 on July 31st.
01:18 minutes
Tags: ben bernanke, dollar, eur, euro, europe, federal reserve, forex, fx, hsbc, tradingfloor.com, ubs