EUR/USD to move towards 1.0500 on a three-month – Rabobank

FXStreet Insights Team FXStreet

Economists at Rabobank expect the US Dollar (USD) to remain resilient over the next weeks and forecast EUR/USD at 1.0500 in three months.

Scope for more broad-based USD strength over the spring

US data releases over the next few months should reveal whether the current stickiness in US inflation is temporary, a seasonal issue, or whether it is persistent in nature. This will be key in determining whether this year’s broad-based USD rally still has legs. That said, the order and extent of policy moves that are implied by market rates seem to have only the vaguest of correlations with the levels of economic activity in each of the G10 economies.

We see scope for more broad-based USD strength over the spring as the market continues to recalibrate the pace and timing of policy moves in the G10.

We continue to see the potential for EUR/USD to move towards 1.0500 on a three-month view before edging higher into year-end.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.