FXstreet.com (Barcelona) - The euro is now revitalized after a boost in risk appetite has pushed the cross to levels below 1.2970 printing fresh session highs at the same time, although retracing some ground as of writing. ECB’s M.Draghi’s presser has brought in no surprises, as expected.
J.Foley, Senior Currency Strategist at Rabobank, suggests that “with the results of the Spanish banks’ stress tests and a report from Moody’s due this week investors are currently unwilling to push yields back to the recent lows. We have pencilled in risk of a move back towards the EUR/USD1.2600 level on a 1 mth view given the prospect of a revival of Eurozone tensions. That said, on the back of the Fed’s accommodative monetary policy we expect bouts of USD strength to be temporary and for EUR/USD to trend towards 1.3500 on a 12 mth view”. The expert remarks 1.2828 as an important support.
J.Foley, Senior Currency Strategist at Rabobank, suggests that “with the results of the Spanish banks’ stress tests and a report from Moody’s due this week investors are currently unwilling to push yields back to the recent lows. We have pencilled in risk of a move back towards the EUR/USD1.2600 level on a 1 mth view given the prospect of a revival of Eurozone tensions. That said, on the back of the Fed’s accommodative monetary policy we expect bouts of USD strength to be temporary and for EUR/USD to trend towards 1.3500 on a 12 mth view”. The expert remarks 1.2828 as an important support.
