Lloyds Downgrade Euro Exchange Rate Forecasts in July Update

Lloyds say:

“We maintain our expectation of near-term euro weakness, as prospects of policy tightening comes into sharper focus in the US and UK.

“Although Grexit fears have subsided for now, implementation risks and debt sustainability concerns should keep the euro under pressure.

“We have revised lower our €/$ forecast for September to 1.03 from 1.05, but have maintained the year-end target of 1.07, helped by the possibility of Greek debt relief.

“We have also revised higher our £/€ forecast for end-2015 to 1.46 from 1.44. £/$ is seen weaker at 1.53 by September, but rising to 1.56 by year-end.”