Flash: Commodity currency outlook on a shallower US downturn for Q2 – JP Morgan

FXstreet.com (London) - Craig MacDonald, Media Relations, Markets & Investor Services, J.P. Morgan said that the bank mark down several forecasts to reflect a shallower US downturn in Q2, a longer Chinese slump and a more protracted European recession, all of which are pushing US rates higher versus most other regions.

Their new Q2 targets are EUR/USD 1.30 (1.32), AUD/USD 0.99 (1.05), USD/BRL 2.05 (1.90), USD/ZAR 9.20 (8.90) and USD/TRY 1.85 (1.80). They said that the dollar appears to be discounting a significant change in Fed policy well ahead of what we consider a less momentous event.