EUR/USD one-month forecast retained at 1.1800 – Rabobank
“EUR/USD this week edged up to levels not seen since late July,” note Rabobank analysts. “The US August Labour report provided additional support, though some of it was short-lived.”
Key quotes
“The ‘dovish tapering’ message from Jackson Hole combined with the softer than expected August payrolls report will have provided some relief to EM investors. That said, in our view a strong surge in confidence in EM market is necessary to provide the grounding for a significantly weaker USD.”
“Given continued concerns about the impact of Covid, combined with fears linked with slowing Chinese growth, we expect that apprehension about the outlook for various emerging markets will continue to support the USD in the coming months.”
“Assuming the Fed continues to edge towards tapering and talk of an eventual hike in the Fed funds rate is not totally blown off course, we retain our 1-month EUR/USD 1.18 forecast and continue to see scope for a move towards EUR/USD1.17 on a 3-month view.”
