EUR/USD to slide towards 1.17 on a one-month view – Rabobank

EUR/USD is vulnerable to a dip to 1.17 on a one-month view in the opinion of Jane Foley from Rabobank as the ECB has already taken a significant step in signalling to the market that it is watching the value of the euro.
Key quotes
“When ECB Chief Economist Lane stated earlier this month that ‘the euro-dollar rate does matter’, he was delving further into the realms of FX intervention than many ECB officials have dared for years. Lane appears to have succeeded in drawing a line in the sand at EUR/USD 1.20 at least for the time being. We see scope that EUR/USD could dip further towards the 1.17 level on a one-month view.”
“While liquidity levels may have undermined the USD, it is set to remain a primary safe-haven currency due to its dominance of the global payments system. This suggests that any further sharp pullback in stocks is likely to prompt more USD support.”
Author

FXStreet Team
FXStreet

















