EUR/USD set to retest its recent lows close at the 1.0350 mark – Rabobank
|Safe-haven demand is likely to be heightened in the months ahead. In the view of economists at Rabobank, this is suggestive of further bouts of USD strength, which could drag the EUR/USD pair down to recent lows in the coming month.
Only scope for a move towards the 1.10 area on a 12-month view
“We see risk that the US is heading into recession, likely in 2023. While weaker growth in the US will also impact expectations regarding the pace and extend of Fed rate rises. The USD’s function as a safe haven currency suggests that it is likely to retain a firmer profile for longer.”
“We see risk of another attempt at the recent lows close to EUR/USD 1.0350 in the coming months and see scope for only a moderate move towards the 1.10 area on a 12-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.