Forecast revised up to 1.30 from 1.17 earlier
From a research note written by its strategists which includes Hans Redeker, James Lord, and Sheena Shah. The note shows that they are cutting long-term USD forecasts and expects the downtrend to begin sooner and be more pronounced.
The reasons for that are a rise in global capital demand due to more expansionary US fiscal policy and increasingly strong global economic performance.
The note mentions that the upward USD correction previously anticipated for 2H 2018 has been brought forward to Q2 instead. They see that the booming global economy and rising capital demand would mean the US will face stiffer international competition for capital to finance its deficit.
"And that would mean it will have to offer higher rates or a cheaper FX rate, or both", the note argues.
If you want a look on how the other players in Wall St are expecting EUR/USD to move, you can check out this post from two weeks ago here.
