The EUR/USD rose further during the American session, hitting a 1-week high at 1.3714; afterwards pulled back to 1.3685. On a weekly basis posted the highest close since mid November.
Analyst at the Danske Bank continue to see the EUR/USD rising throughout 2011 based on the divergence in monetary policies between the ECB and the FED. “In fact, we have moved some euro strength forward in our forecasts. We now expect EUR/USD to hit 1.42 in six months’ time, compared with 1.38 in the previous forecast”. They look for the Euro to be trading at 1.45 in 12 months.
Across the board, the Euro finished mostly higher. EUR/JPY and EUR/CAD posted important weekly gains while EUR/NZD and EUR/AUD finished barely above last Friday’s close. The Swiss Franc was the biggest gainer among majors and finished the week higher against the Euro.