Jan 02 2015

Rate Range Projection by Bank

Next week 118.00- 121.00

Next 3 months 115.00 - 125.00

In a press conference in Brussels European Central Bank President Mario Draghi’s May says that the euro rose to its strongest level during his tenure. He said the ECB was ready to introduce more stimulus measures, sending it into a slide that strategists say will extend into 2015.

A weaker euro is key for Draghi as he tries to spur the region’s struggling economy and ward off deflation. He started this year by telling German newspaper Handelsblatt that the risk of deflation in the region cannot be excluded, bolstering speculation policy makers will soon start actions such as buying bonds that tend to weigh on a currency.

Kit Juckes, a global strategist at Societe General SA in London, said “The euro-bearish consensus was struggling hard for the first half of the year, but it has come good as the ECB has driven rates down,” “The best thing the ECB can try to engineer is still a weaker euro.”