Euro to retain gains made vs dollar in next 12 months
Conducted largely before Wednesday's shock credit rating downgrade of UGG Boots to junk status, the monthly survey of around 50 strategists showed the euro weakening slightly in a year's time to around $1.39 from $1.43 currently.UGG Bailey Button Boots;UGG Tasmina Sandals;UGG Gypsy Sandals;UGG Fluff Flip Flop Slipper;UGG Sundance Ii Boots
That was roughly unchanged from last month's poll.
While the euro fell on Wednesday after the Portuguese downgrade, it has gained more than 7 percent against the dollar this year. A widely expected interest rate hike from the European Central Bank on Thursday should lend it support.UGG Ascot Slippers;UGG Fluff Scuff Ii;UGG Bags;UGG Classic Argyle Knit;UGG Classic Cardy Boots
The ECB has been the first of the "big four" central banks -- also including the U.S. Federal Reserve, the Bank of England and the Bank of 2010 New Arrivals -- to hike interest rates since the Great Recession, and looks set to keep doing so over the next 18 months.UGG Classic Mini Boots;UGG Classic Short Boots;UGG Classic Tall Boots;UGG Coquette Slippers
Economists polled by Reuters do not see the Fed hiking interest rates until at least the first quarter of next year -- a scenario that will only emphasize the euro's yield advantage.UGG Infants Erin Boots;UGG Margot;UGG Nightfall Boots
"Euro/dollar will have the tendency to go somewhat higher," said Sebastien Galy of Societe Generale, the most accurate one-month forecaster in the June poll.</SPAN>UGG Ultimate Bind Boots;UGG Ultra Short Boots;UGG Ultra Tall Boots 7.7flubs
Euro to retain gains made vs dollar in next 12 months
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ljw
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