Scroll Top

EUR/USD seen falling to 1.08 on a three-month perspective – Rabobank


Analysts at Rabobank see the US Greenback appreciating towards the Euro and the Pound over the following few months. They level out that the relative resilience of the US financial system means that it will likely be a while earlier than financial coverage is eased.

Key quotes: 

“Fitch’s resolution to downgrade the US credit standing has turned consideration to subsequent week’s Treasury provide, although the USD’s secure haven enchantment means that impression from the Fitch resolution is more likely to be restricted.”

“Fed coverage stays within the driving seat. Whereas we count on that Fed funds have probably peaked, the next for longer outlook is USD supportive.”

“Whereas we count on that Fed charges have probably peaked, the relative resilience of the US financial system means that it will likely be a while earlier than coverage is eased. This issue mixed with a rising consciousness that the basic drivers behind different currencies could possibly be deteriorating ought to provide the USD broad-based assist. We keep a 3-month EUR/USD forecast of 1.08.”

“In opposition to a backdrop of stagnating financial exercise in Germany, we see lengthy EUR positions as weak given the chance that ECB charges could have peaked already final month. We additionally see lengthy GBP positions as weak given weak progress within the UK and the optimism expressed by the BoE concerning the potential for UK CPI inflation to ease.” 

“We count on GBP/USD to melt to 1.26 on a 3-month view.”

Data on these pages accommodates forward-looking statements that contain dangers and uncertainties. Markets and devices profiled on this web page are for informational functions solely and shouldn’t in any means come throughout as a advice to purchase or promote in these property. It is best to do your personal thorough analysis earlier than making any funding choices. FXStreet doesn’t in any means assure that this data is free from errors, errors, or materials misstatements. It additionally doesn’t assure that this data is of a well timed nature. Investing in Open Markets includes a substantial amount of danger, together with the lack of all or a portion of your funding, in addition to emotional misery. All dangers, losses and prices related to investing, together with whole lack of principal, are your accountability. The views and opinions expressed on this article are these of the authors and don’t essentially replicate the official coverage or place of FXStreet nor its advertisers. The writer is not going to be held chargeable for data that’s discovered on the finish of hyperlinks posted on this web page.

If not in any other case explicitly talked about within the physique of the article, on the time of writing, the writer has no place in any inventory talked about on this article and no enterprise relationship with any firm talked about. The writer has not acquired compensation for writing this text, aside from from FXStreet.

FXStreet and the writer don’t present personalised suggestions. The writer makes no representations as to the accuracy, completeness, or suitability of this data. FXStreet and the writer is not going to be responsible for any errors, omissions or any losses, accidents or damages arising from this data and its show or use. Errors and omissions excepted.

The writer and FXStreet aren’t registered funding advisors and nothing on this article is meant to be funding recommendation.

Leave a comment