Economists at Rabobank remain broadly bullish on the outlook for the USD but do not judge the EUR as being especially vulnerable versus the greenback.
Key quotes
“The USD cannot be expected to weaken decidedly until investors feel confident enough to move back into emerging markets. This could be some way off. Despite our strong USD view, the EUR should be protected by the Eurozone’s large current account surplus.”
“Speculation that the North of the region will recover soonest due to lighter lockdowns and greater fiscal ammunition, suggests scope for a prolonged period of strain within the Eurozone that could weigh on the EUR.”
“We see risk of EUR/USD dipping to 1.05 on a 3-month view.”
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