ECB President's Draghi moves to push the European Central Bank harder into QE have ignited comments on when the euro will head to parity with the US dollar.
Alberto Gallo, head of European macro credit research at London-based Royal Bank of Scotland:
- "We don't have bank lending, we don't have corporate investment and government investment -- we're relying on FX to do the job"
- "There's definitely pressure for the euro to go even lower toward parity in the next month"
Chris Turner, head of currency strategy at ING Groep NV in London:
- "Euro-dollar should break decisively lower"
- "And if, as we expect, U.S. short rates start to move quickly higher over coming months," parity should be reached by year-end
Barclays Plc and TD Securities Inc. are among banks in a Bloomberg survey that agree the exchange rate will fall to $1 by the end of this year
- Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. estimate parity will be reached by 2016
The median estimate of 93 forecasts in a Bloomberg survey is for the euro to finish the year at $1.10. That's down from $1.18 projected at the start of the year.
via Bloomberg
