Euro Bulls See Through Draghi’s ‘Ultra-Dovish’ Rhetoric: Allianz
(Bloomberg) -- EUR/USD will probably strengthen further as investors look past ECB President Mario Draghi’s comments, says Charlie Ripley, investment strategist for Allianz Investment Management, which manages more than $700 billion.
- “Investors are starting to question the continued rhetoric from Draghi about being ultra-dovish” and speculating about when the ECB will announce tapering, Ripley says
- “This scenario is going to put continued upward pressure on EUR/USD”
- Expects EUR/USD to break out of current range with 1.16 as upper bound
- Sees 10-year Treasury yield target of 2.50%-3% by year-end; continued central bank action around the globe will push rates higher
- Markets “underestimating the risk” of unwinding QE globally, Ripley says
To contact the reporter on this story: Lananh Nguyen in New York at lnguyen35@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Brian Chappatta
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers 2539Z GR (European Central Bank)
People Charles Ripley (Allianz SE)
Mario Draghi (European Central Bank)
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