Prepare for further EUR weakness – BNPP

FXStreet (Barcelona) - Phyllis Papadavid of BNP Paribas, sees more weakness ahead for the EUR in the week ahead.

Key Quotes

“Renewed weakness in the EUR will continue to be a central theme following the European Central Bank (ECB) signalling a frontloading of its quantitative easing programme (QE) before the summer.”

“We expect parity by the year end and continue to expect a trough in EURUSD at 0.95 in H2 2016.”

“Of interest will be ECB President Draghi’s current interpretation of the outlook when he speaks at the ECB conference in Portugal. Short positioning in the EUR is likely to continue to build in the weeks ahead as the ECB aims to inject traction into its QE programme.”

“Developments in Greece will be worth watching – they have tended to correlate well with EURCHF.”

Source:http://www.fxstreet.com/news/forex-news/article.aspx?storyid=690c2b97-82a2-4ae5-b8bd-50fd77521b30