EUR/USD forecast: eyes on US data – Rabobank and OCBC

By FXStreet FXStreet (Edinburgh) – EUR/USD has resumed its downside and is now testing the area of daily lows around 1.0760, ahead of US Retail Sales due later.

In the view of Jane Foley, Senior Currency Strategist at Rabobank, “Following last week’s strong US payrolls release we brought forward our EUR/USD1.05 target to a 3 mth forecast and now see risk that EUR/USD will move towards 1.04 by the middle of next year. That said we remain reluctant to put parity on the forecast table and will likely refrain from refreshing this view at least ahead of the outcomes of the December ECB and Federal Reserve policy meetings”.

In addition, FX Strategist at OCBC Bank Emmanuel Ng argued “The EUR tripped briefly after the ECB’s Draghi highlighted the EUR’s recent resilience and its impact on inflation but the pair floated higher subsequently on the back of the broad dollar retracement. In the interim, investors may fade any test of 1.0850/00 with the 1.0700 floor holding up for now”.
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Source:: FX Street