📊Model Shows Chance Of Euro Trading Above 1.05: Cable FX Macro

• A Bloomberg model supported by desk forecasts and the volatility surface is throwing a 72% probability that the euro will trade in the range of 1.0232 to 1.0582 over the next week

• This implies that euro has a strong chance of trading above 1.05 over the short-term.

• This does not go in line with the analyst consensus which stands at EUR0.98, the green histogram shows the range of forecasts, with some pencilling euro as low as 0.95

• Looking into end of year, the FX forecast model projects a strong chance that the rate will hold above parity