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Forex pairs in this Article » EUR/USD
FXstreet.com (London) - Jane Foley, Senior Currency Strategist at Rabobank explained that in their opinion , they see EUR/USD holding above the 1.30 area until H2 next year.

Key Quotes:

“The Eurozone may have moved away from the hub of its crisis, but the mix of slow growth, high unemployment and disinflation will ensure that the plenty of disharmony remains in the region”.

“In this environment the ECB can be expected to remain extremely dovish going forward”.

“While the ECB avoids commenting directly on the level of the exchange rate, the dovish position of the central bank should help contain upside potential for the EUR. That said, this morning’s release of the Eurozone’s Sep EUR14.0 bln current account surplus is a reminder that the region does have a number of positive fundamentals”.

“This year, the EUR has earned its reputation as a resilient currency as the region moved away from the centre of its crisis”.

“Given this more constructive political backdrop, we don’t expect the ECB to be able to manipulate the EUR to weaker levels easily”.

“We expect EUR/USD to remain consolidative around current ranges into year end with the USD likely winning back some ground into the March FOMC (given our expectations of Fed tapering in March)”.

“We see risk that EUR/USD holding above the 1.30 area until H2 next year”.
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