EUR/USD to head lower towards 0.95 over coming months – Rabobank
|EUR/USD has turned south and declined below 0.9950. Economists at Rabobank expect the pair to move downward to 0.95 this quarter.
Trendline resistance is just above parity
“We remain USD bulls and retain our EUR/USD 0.95 target on a one-to-three month view.”
“The single currency lacks the safe haven credentials of the USD which means the EUR is more susceptible to concerns about slowing growth.”
“Although it is clear that the Eurozone is facing a difficult winter, in our view the EUR is not yet fully priced for the energy price crunch facing the region given the risk that it could extend for several years. This could potentially make production from some industry groups untenable for Europe on a one-to-five year horizon. Disruption of this kind is suggestive of persistent drag on the EUR.
“Trendline resistance is just above parity close to the 50-day SMA at 1.0015.”
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