Analysts from Rabobank see scope for further downside in the EUR/USD and they revised lower the 12m forecast to 1.15.
Key Quotes:
“The past week EUR/USD has made a fresh 2018 low, reverting to levels last seen in December 2017. While we would attribute the bulk of the recent move lower in EUR/USD to the broadbased move in the USD, the value of the EUR has recently suffered from some home grown issues linked to disappointing economic data and Italian politics. The move lower in EUR/USD has hit our 1.18 target far sooner than we expected. Although we would not be surprised to see a rebound or a period of consolidation in the coming weeks, we see scope for further downside potential in EUR/USD and have revised down our 12 mth forecast to 1.15.”
“While interest rate differentials and a worsened atmosphere in Eurozone politics suggests that EUR/USD has further to fall, technicals offer further support to the view that the broad based USD recovery can extend further.”
Share
