EUR is likely to hold up well against the USD - Rabobank
|Jane Foley, Senior FX Strategist at Rabobank, suggests that while they would expect the USD has the capacity to recover ground vs a wide range of currencies particularly if risk appetite lurches lower again, they expect the EUR is likely to hold up well against the USD.
Key Quotes
“The rapid improvement in Eurozone fundamentals played a part in the weakness of the USD in 2017 as flows were drawn back across the Atlantic. This year strong growth in the Eurozone, a relatively better budget position and the region’s huge current account surplus will continue to cast a poor light on the USD. In the coming weeks we are expecting to see more choppy price action in EUR/USD around current levels with a modest upside bias on a 3 mth view. Our 12 mth forecast is EUR/USD1.28.”
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