EUR holds its own - Rabobank

Sandeep Kanihama FXStreet Contributor

Jane Foley, Senior FX Strategist at Rabobank, suggests that they expect the recent upside potential to be tough above the EUR/USD 1.20 level in 2018

Key Quotes

“ECB President Draghi promoted a cautious outlook on inflation at his December press conference and signalled that the Eurozone economy is not yet strong enough to warrant a reduction of policy stimulus. That said, there was no strong expectations in the market that the ECB would be hiking rates in 2018. The big questions in the market surrounding the ECB relate to whether QE will be drawn to a close after 2018’s nine month tapered extension and in which quarter the following year the central bank is likely to hike.”

“Although the dovish tone of ECB President Draghi on inflation weighed on the EUR, given the substantial upward revision to Eurozone growth estimates and the increased growth risks that are now seen by the ECB, the EUR has likely been provided with adequate sustenance to hold off another bout of USD strength. That said, the market is already long of the single currency. As a consequence, we expect upside potential to be tough above the EUR/USD 1.20 level in 2018.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

AUD/USD stuck as the RBA talks tough into a slowdown

The Australian Dollar is going nowhere in a hurry, and the contradiction at its core explains why. The Reserve Bank of Australia keeps dangling the prospect of another hike, yet the economy it governs just expanded 0.3% in the first quarter, a clear step down from the prior pace. A central bank threatening to tighten into a visible slowdown is not a recipe for conviction in either direction, and the tape shows it.

USD/JPY: Japanese Yen coiled at the line, leaning on everyone but Japan

The Yen is doing very little, and that stasis is the whole story. USD/JPY sits glued near 160.00 not because Japan has found new strength, but because two outside forces are fighting to a draw over it: a US rate complex that keeps the dollar bid, and a Ministry of Finance that refuses to let the line break.

Gold declines below $4,500 on stalled US-Iran ceasefire talks, US NFP data looms

Gold price edges lower to near $4,470 during the early Asian session on Friday. The precious metal remains volatile amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.

Bitcoin falls below $64K as demand turns negative, short-term holders' selling intensifies

Bitcoin has fallen below $64,000 on Thursday amid weakening market demand and mounting selling pressure from short-term holders. The leading cryptocurrency slipped toward the $63,000 level amid a broader risk-off environment, with several key metrics signaling one of the most challenging periods of the current market cycle.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.