EUR/USD: Near-term downside risks before rallying to 1.15 by year-end - Nomura

Analysts at Nomura came out with their latest report on the EUR/USD price-forecast, with the bank expecting the rate to rally to 1.15 by year-end, although sees near-term downside risks.

Key Quotes via eFX:

“EUR/USD has been in demand as of late mainly following its positive reaction to last week' President Draghi's press conference.”

“In that regard, Nomura Research notes that President Draghi communicated that the Bank had removed the reference to using all instruments to signal that the sense of urgency is gone, and as the ECB's risk assessment has likely become more balanced, these communications supported EUR for now.”

“Nonetheless, over the next few months, Nomura argues that French elections and the Fed policy stance will likely be more important drivers of EUR/USD, as they pose near-term downside risks.”

“Beyond that, Nomura expects the EUR to benefit from the reflation in the medium term and target 1.15 for EUR/USD by year-end.“

Meanwhile, EUR/USD is now trading near 1.0650, almost unchanged on the day.