June 18, 2012
The euro reversed strong gains against the U.S. dollar in Asian trade on Monday, as optimism surrounding the expected win by Greece’s pro-bailout parties in Sunday’s critical elections proved short-lived for the single currency.
Still, one strategist remains upbeat on the outlook on the euro, and it has little to do with Greece.
“(One) reason we expect the euro to push higher has nothing to do with Greece. We think the Fed is going to open the door to further stimulus (on Wednesday),” Ashraf Laidi, Global Chief Strategist at City Index told CNBC Asia’s “Squawk Box” on Monday. Laidi forecasts the euro-dollar will move as high as 1.2850 this week.
Citing recent weakness in U.S. economic data, Laidi predicts the country’s central bank will extend Operation Twist at the June 19-20 meeting.