Maraging Partners expect lower EUR/USD by the end of Q2 2014

Sunday, 19 January 2014 16:56

Maraging Partners, a Moscow-based currency consultancy, have published their FX market view for Q2 of 2014. The report covers EUR/USD, USD/RUB, and EUR/RUB, and combines news-based and quantitative approaches. Maraging Partners expect lower EUR/USD by the end of Q2 2014: "In the light of the Ukraine crisis the united Europe looks, again, politically amorphous and incapable of decisive action. Europe's inability to act used to make EUR attractive when the "act" of monetary authorities -- as is most often the case -- was about diluting the value of money. Paradoxically, EUR is closer than USD to the libertarian ideal of government-independent money, not because there is too little government in Europe, but because the structures of balancing various agendas are amorphous and slow, given the diversity of the agendas. In this phase of the cycle when the monetary authorities begin to focus on limiting the growth of the money supply, one can expect that the FRS and the USD will lead the way, while Europe will be lagging behind, which means weakening EUR/USD."

See full text of the report on the Maraging Partners web site.

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