Forex Flash: EUR/USD buy on dips – Rabobank

FXstreet.com (Barcelona) - The euro has recently found extra support after the ECB has released the LTRO's early repayment figures, which surpassed expectations, pointing to tighter ECB monetary policy. Jane Foley, Senior Currency Strategist at Rabobank, comments, "&for the time being the market is looking ahead to the possibility of an ECB rate hike later in the year which is well ahead of the anticipated timetable for a Federal Reserve rate move".

"The combination of a rise in confidence in the health of EMU combined with the expectations that the ECB may now be on a path towards gradual reduction in its policy accommodation has already pushed the EUR noticeably higher& Our long-held medium-term target of EURUSD1.35 is now almost within touching distance. While it is likely that we will have to revise higher our targets, a period of consolidation could precede a break higher. We would look to buy dips near-term", concludes the expert.