FXstreet.com (Barcelona) - The bloc currency remains stuck around the 1.2950 region on
Thursday, slightly above session lows at 1.2930
EUR has started the week exhibiting some weakness, as the effects of the rally post-FOMC,
which pushed the cross as high as 1.3172, have vanished.
J.Foley, Senior Currency Strategist at Rabobank, comments that tepid economic data as of
late have put policymakers to work, resulting in an increase of infrastructure projects in China,
further easing in both the BoJ and the BoE, an unlimited QE by the Fed, or at least until de
labor market show signs of improvement, and the ECB's OMT.
The expert underscores the relevance of Spain and its bailout back-and-forths, "as a
consequence we are still penciling in risk that EUR/USD could still pullback to the
EUR/USD1.2600 area this autumn. That said, the fact that EZ politicians are working towards
the goal of fiscal union has made the outlook for EMU more coherent and the system's future
more secure. This factor combined with the determination of the Fed to support the US
economy and follow weak USD policies suggests that EUR/USD can trend higher medium-
term. We maintain a 12 mth EUR/USD forecast of 1.3500".
Thursday, slightly above session lows at 1.2930
EUR has started the week exhibiting some weakness, as the effects of the rally post-FOMC,
which pushed the cross as high as 1.3172, have vanished.
J.Foley, Senior Currency Strategist at Rabobank, comments that tepid economic data as of
late have put policymakers to work, resulting in an increase of infrastructure projects in China,
further easing in both the BoJ and the BoE, an unlimited QE by the Fed, or at least until de
labor market show signs of improvement, and the ECB's OMT.
The expert underscores the relevance of Spain and its bailout back-and-forths, "as a
consequence we are still penciling in risk that EUR/USD could still pullback to the
EUR/USD1.2600 area this autumn. That said, the fact that EZ politicians are working towards
the goal of fiscal union has made the outlook for EMU more coherent and the system's future
more secure. This factor combined with the determination of the Fed to support the US
economy and follow weak USD policies suggests that EUR/USD can trend higher medium-
term. We maintain a 12 mth EUR/USD forecast of 1.3500".
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