QE2 drives Danske’s bullish stance on euro

The Danish bank based its forecasts on the assumption that the Federal Open Market Committee would engage in QE2. “In September, we therefore pencilled in significant dollar and sterling weakness, and euro and yen strength. We believed the central banks most likely to follow the Fed would see their currencies depreciate and vice versa,” said Arne Lohmann Rasmussen, chief analyst and head of foreign exchange and commodities research at Danske Bank in Copenhagen.

Rasmussen predicted the