Forex Flash: EUR/USD scope for a near-term bounce but seen at 1.20 in 12M – Wells Fargo

 

Mon, Jun 18 2012, 16:23 | FXstreet.com

Despite the pro-austerity parties fared best at the weekend’s election in Greece, “some other key steps remain to be taken in the coming weeks” with the Troika returning to Greece to review the country’s eligibility for continued international aid, says Wells Fargo analyst team. “Separately, the details of financial assistance for Spain to help recapitalize that country’s banking sector should be finalized by late this month”.

“At this time, based on the election outcome and likely near-term events, we see no need to adjust our foreign exchange forecasts”, says Wells Fargo. “There is still scope for a near-term euro bounce, although we see the euro slipping back to $1.20 in the next twelve months”. Commodity and emerging currencies like the CAD and the MXN “could enjoy more lasting gains”, they added.

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