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Analysts improve forecasts to 1.25

The eurozone is stepping up the pace of vaccinations, which immediately reduced the difference in yields between German and American bonds. This inspires buyers of EUR / USD, and as a result, a number of financial institutions are beginning to improve their forecasts for the main currency risk. In the options market, there is also a gradual reversal of sentiment in favor of long positions.On the other hand, how can the single currency strengthen if the risks of a double recession are growing in the Eurozone, the proportion of the vaccinated population who received at least one vaccine is 25.1% (63.2% in the US), and countries still have strict quarantine restrictions?
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But, investors are optimistic about the future and believe that the United States will stretch out on its hump both the world economy and the economies of export-oriented countries.

The information from the Pfizer company, which is increasing supplies to the Old World by 100 million vaccines, raised EUR / USD to 1.2060.

According to Goldman Sachs forecasts, by the end of May, the four major economies of the Euroblock will vaccinate 37% of the population, and in a month – 54%. This allowed the bank’s analysts to revise the EUR / USD targets at the end of the year from 1.21 to 1.25.

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The rate of vaccination directly affects the speed of economic recovery and the yield on Treasury bonds. Now the rate cut is beneficial for the EUR / USD buyers.

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