Forex Fash: EUR/USD expected to weaken over medium-term - Wells Fargo

The Wells Fargo analyst team expects the euro to weaken over the medium-term. "The central bank's outlook is leaning dovish once again, while pace of improvement in the peripheral Eurozone bond markets has slowed", they comment.

"A soft Eurozone economy should see the euro weaken over time, while FX positioning offers plenty of scope for the euro to decline", they explain. Wells Fargo sees EUR/USD at 1.3300, 1.3100 and 1.2600 in 3, 6 and 12 months.