Nomura lowered EUR/USD forecast

Analysts at Nomura decided to cut target for EUR/USD in Q4 from $1.27 to $1.24. The specialists give 6 reasons for weaker euro in the coming months:

1) Fixed income portfolio flows are weakening.

2) Corporate currency flow, linked to M&A, has shifted to a clearly negative direction for the euro.

3) Risk aversion and portfolio rebalancing failed to support the euro substantially early in Q4.

4) The ECB is considering further balance sheet expansion.

5) Economic data have weakened substantially.

6) Euro zone peripheral spreads widened notably last week highlighting financial stability risks in the region. 

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