EUR/USD: 3 reasons why Credit Suisse is still targeting 1.15 in the medium term

Credit Suisse remains bullish on the EUR/USD on the forex over the medium term, aims for 1.15 within 3 months.

"We maintain our 3-month 1.15 target on the EUR/USD. Here are the reasons:

1- We do not think the Fed will raise rates this year (We expect a first hike in May 2017) despite the fact that the market continues to display a 50% probability of such a movement.

2. We believe that any increase in the political risk by the US Presidential elections of 8 November will strengthen the defensive currencies such as the EUR.

3- We believe that the ECB will only implement marginal easing in December.