Currencies | Jun 02 2009
By Rudi Filapek-Vandyck
The US dollar weakness has much further to go still, report analysts at TD Securities. They previously set a target of EUR/USD1.42, and that target has now been reached; much quicker than anticipated.
Yet, the team reports this morning it wants to persist in staying short the US dollar. As such, TD Securities increases the target to EUR/USD1.4550.
Note the analysts: The trend against the USD looks deeply entrenched at the moment, amid concerns about the US’ fiscal position, the state of demand for US Treasury product and the impact of the Fed/Treasury’s polices on the longer term economic outlook.
In a sign of current market sentiment, the analysts suggest that even the new target risks being lifted again at a later stage.
