EUR/USD to fall to 1.02 by the end of the year.

Economists at Morgan Stanley discuss the EUR outlook.EUR/CHF to marginally increase toward parityWe expect EUR/USD to fall to 1.02 by the end of the year, driven by defensive investor bias, positive carry, and slow local growth. This trend is somewhat mitigated by the ongoing shift in capital flows.

However, we expect the Euro to outperform its regional peers. We maintain a long-term bullish bias for EUR/GBP, forecasting it to rise above 0.90 over the next 12 months as capital repatriation into Europe significantly contrasts with the lukewarm investor demand for UK investments.

We expect EUR/CHF to marginally increase toward parity, with the Euro’s positivity partly countered by the defensive allure of the Swiss Franc.

EUR/USD extends gains toward 1.0750 despite disappointing EU data

EUR/USD is stretching higher toward 1.0750, as bulls ignore dismal revisions to the Eurozone GDP and jobs data. The pair is benefiting from the ongoing decline in the US Dollar, despite positive US Treasury bond yields and tepid risk sentiment. Focus shifts to the US data.

EUR/USD News

GBP/USD advances toward 1.2500 as US Dollar extends losses

GBP/USD is rising toward 1.2500 in the European session. The pair capitalizes on the extended US Dollar weakness, despite a cautious market mood and higher US Treasury bond yields. The UK docket remains data-dry, as the focus shifts to the US data.

GBP/USD News

Gold drops sharply post failing to reclaim $1,950 as hawkish Fed bets rebound

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