The wizards and magicians that take part in the Reuters polls have looked into their magic mirrors and seen the outcome for currencies in the future. Specifically for 1,6 and 12 months ahead. Follow me into the looking glass as we see what has been foretold.
- EUR/USD seen at 1.34 1 month, 1.30 6 months, 1.28 12 months (1.36, 1.32, 1.29 prior)
- GBP/USD 1.69 1m, 1.69 6m, 1.68 12m (1.70, 1.69, 1.67 prior)
They also warn of impending doom in emerging markets with 23/33 fx strategists forecasting another emerging market FX sell off in the coming year.
So, a collapse for the euro but expectations have firmed up on the pound holding gains against the dollar, which is probably a fair assessment in the race to raise rates.
What say you less magical traders?
“Your feeble euro longs are no match for the power of the Down Side”
