EUR/USD hits 1.17 as European optimism grows – Rabobank
|The break above EUR/USD1.17 today is further evidence of both USD weakness and the attractiveness of the European renaissance story, Rabobank's FX analyst Jane Foley reports.
Stronger Euro may stir ECB doves
"That said, just as USD weakness is a boon to US exporters, EUR strength is a headwind for European companies which are already under fire from tariff related uncertainties.
"Economists expect that German growth will remain lacklustre this year and, while the ECB has signalled that it has neared the bottom of its interest rate cutting cycle, further sharp gains for the EUR could unleash ECB doves."
"Also, CFTC speculators’ data are beginning to hint that positioning may be becoming stretched. Thus, while we have brought forward our EUR/USD1.20 forecast from an 18-month view to 12 months, we do not expect the move to be a straight line. We continue to see scope for pullbacks in favour of the USD on a 3-month view."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.