Greenback losing its polish – Rabobank

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank explained that in reflection of the drop in expectations regarding a 2015 Federal Reserve rate hike, the USD has been the worst performing G10 currency measured from the middle of last month.

Key Quotes:

“During this period EUR/USD has gained over 1% and since June 1, the EUR has climbed over 4% vs. the USD. Although market expectations have come down squarely in favour of steady policy this year, the ‘will they, won’t they’ debate will likely remain heated all the way up to the December Fed meeting and potentially beyond. Despite investors’ preoccupation with the Fed, in the approach to theOctober 22 ECB meeting the spotlight is likely to turn back to the absence of inflation pressures in the Eurozone. This could put the EUR on the back foot in the near-term. “

“The recent gains in the value of the EUR are likely to have been a source of concern for ECB policy makers. A strong EUR was cited by ECB President Draghi is a speech on September 23 as one of the challenges of the current environment. Eurozone headline CPI inflation again turned negative …read more

Source:: FX Street