The euro is set to end the week in the red as the three-week rally from 1.0770 has ben capped at 1.1400. The FX analysis team at Rabobank points out to a series of events that might have changed the EUR/USD trend and wars about another dip over the mid-term.
Key quotes
“EUR/USD has been impacted by a couple of significant EUR centric events which may be game-changers for the single currency. At the very least they contribute towards a levelling up in the ground between the EUR and the USD.”
“On the basis that there could be another rush into the safe-haven USD if there is a second wave of Covid-19 or if investor confidence sags under the weight of poor economic news, we see scope for another dip lower in the 6-month horizon towards EUR/USD1.09.”
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