Long EUR/USD: rate pulse to at least 1.15 expected – Nomura

FXStreet – The Euro is likely to break out in comparison to the US Dollar is soon out of its sideways range, said the market analysts of the Japanese Nomura Bank. The EUR/USD you will see in the further course of the year, higher record, and therefore recommend the opening of a long position. The objective of the course is at 1.15 which is targeted in the next 3-4 months.

Important Quotes:

The macro picture should help the currency pair is certainly. The Inflation put the Euro area in the last few months with a shovel. The core inflation rose to the highest level since mid-2013. This is likely to fuel the speculation about a transition in the phase-out of ultra-lax monetary policy of the European Central Bank in the summer months.

The impact of interest rate tightening by the Federal Reserve on the Dollar. The Fed increased its key rate since December, twice the Euro rose by 2 percent. Both the growth and inflation data have disappointed and the next rate increase could come only in the summer.

In addition, Germany has the largest current account surplus in the world and the United States have one of the largest deficits in the Euro area. A combination of a stronger Euro, more European imports from the United States and less European exports to the U.S. are necessary in order to reduce the trade deficit.

** FXStreet News Editorial, FXStreet**

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