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27 Feb 2013
Forex Flash: EUR/USD would keep the current levels near-term – Rabobank
The bloc currency clings to the key level at 1.3100 on Wednesday, after better data from the euro area improved the sentiment and pushed the cross from the mid 1.30s.
In the view of Jane Foley, Chief Currency Strategist at Rabobank, today’s move lower in the peripheral bond markets may hint at the idea that the recent sell-off in the cross could represent a buy opportunity.
“While the EUR’s fundamentals have weakened on the back of the Italian election result, in an environment in which the Fed continues to maintain open-ended QE it will be very difficult for the USD to gain upside traction. We expect that EUR/USD could remain in a jittery range around current levels in the weeks ahead”, Foley concluded.
In the view of Jane Foley, Chief Currency Strategist at Rabobank, today’s move lower in the peripheral bond markets may hint at the idea that the recent sell-off in the cross could represent a buy opportunity.
“While the EUR’s fundamentals have weakened on the back of the Italian election result, in an environment in which the Fed continues to maintain open-ended QE it will be very difficult for the USD to gain upside traction. We expect that EUR/USD could remain in a jittery range around current levels in the weeks ahead”, Foley concluded.