Forex: EUR/USD will weaken again to reach 1.15 in the 4Q, says National Bank Financial

By IBTimes Staff Reporter | April 08 2009 11:12 PM

FXstreet.com (Barcelona) - The Euro, which has been dropping continuously from levels around 1.4720 on Dec 18, seems to have bounced at 1.2450 to pare previous losses, fuelled by the Federal Reserve's announcement to buy $ 300 millions worth of U.S. treasuries, The National Bank Financial, however sees the Euro weakening further during the current year.

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According to the April's currency outlook of the National Bank Financial, the reason fro the Euro recovery is the Fact tat he ECB walks behind other major Central Banks, since Eurozone economy does not seem better than others, and therefore, quantitative easing is yet to come in the Euro Area.

Hence, the National Bank Financial expects the Dollar strength to resume, and the Euro to drop to levels around 1.24 in the second quarter, 1.20 in the third quarter and to hit a bottom at 1.15 in the last quarter of 2009 and remain around there in the first half of 2010.