Euro: Modest upside bias against US Dollar as Fed repricing – Rabobank
Rabıobank's Senior FX Strategist Jane Foley discusses recent EUR/USD strength, noting it was mainly driven by a softer Dollar after weak United States (US) labour data reduced Federal Reserve (Fed) rate hike expectations.
Rabobank's Senior FX Strategist Jane Foley discusses the recent strength of EUR/USD, attributing it primarily to a weaker US dollar following disappointing U.S. labor data, which lowered expectations for Federal Reserve rate hikes. Foley emphasizes positive Eurozone data but acknowledges potential headwinds and limited appetite for a strong euro.
Rabobank anticipates EUR/USD reaching 1.16 within three months, provided there are no unexpected growth surpluses in the Eurozone. The sharp rise in EUR/USD earlier this month, fueled by the surprise softness in July's U.S. labor market report, stems from expectations of a steady Fed, suggesting further potential weakness in the dollar.
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