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EUR/USD: A Drop To Parity Then A Rally To 1.20-1.25 - Erste
Erste Group expects EUR/USD to drop in the coming months to parity or lower levels, before staging a strong rally to 1.20-1.25. The following are the key points and target levels in Erste's forecasts along with its technical view on EUR/USD. "Utterances of ECB and Fed members point to monetary policy divergence between the US and the EMU over the coming months. The Fed is hinting at a rate hike in September or December whereas the ECB wants to ease its policy if monetary conditions tighten further," Erste argues. "We think the Fed will raise the lending rate later this year and that it will continue to tighten its ... (full story)