Throughout the world, we are seeing Effect-Japan growing steadily. Europe obviously goes in the rhythm of the Rising Sun with the keeping of record low interest, and JP Morgan does not like it. Their forecast for one year was an EUR / USD exchange rate of about $ 1.20, but given the change in economic conditions, they are downgrading to $ 1.17.
They define the shift in business cycles in Europe as “Japanification,” and for the ECB they say they have been going too long for a flat surge of profitability. According to the bank, the rise to $ 1.17 will be followed by a “tactical” weakening.
Even lower are Lloyds. Their target is $ 1.14. The English bank is expecting a price break in the area of strong resistance at 1.1290 – 1.1310. They speculate that the upward upward movement would form a rather “solid” bottom that could potentially send the price even higher, close to JP’s medium-term goals.
Trader Martin Nikolov