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4 Feb 2013
Forex Flash: EUR/USD year-end target revised to 1.40 – Rabobank
The single currency is bouncing off session lows in the mid 1.3500s on Monday, gathering some traction to trade back to the 1.3570 as risk aversion is taking a breather.
Jane Foley, Chief Currency Strategist at Rabobank, commented that the cross breached the bank’s former target of 1.3500 sooner than expected, and the bank has now revised up its year-end target to 1.40
“We have revised our 12 mth EUR/USD forecasts to 1.40 to reflect both our negative USD view and the expectation that the EMU crisis will continue to lurch towards a solution, but we do not think that the road ahead will be smooth. On the anticipation that tension in the Eurozone will raise its head again, we see risk for a potentially aggressive pullback in EUR/USD before 1.40 is in the sights”, explained Foley.
Jane Foley, Chief Currency Strategist at Rabobank, commented that the cross breached the bank’s former target of 1.3500 sooner than expected, and the bank has now revised up its year-end target to 1.40
“We have revised our 12 mth EUR/USD forecasts to 1.40 to reflect both our negative USD view and the expectation that the EMU crisis will continue to lurch towards a solution, but we do not think that the road ahead will be smooth. On the anticipation that tension in the Eurozone will raise its head again, we see risk for a potentially aggressive pullback in EUR/USD before 1.40 is in the sights”, explained Foley.