While economists at Rabobank concur with the Fed that rises in CPI inflation will be transitory, optimism in the US economic outlook contrasts with disappointment in the EU linked to the slow vaccine rollout The EUR/USD pair still risks a move back to 1.20, but it is seen trading at 1.18 on a 12-month view. Key quotes “While we continue to expect the Fed to battle with the markets in the months ahead to push through the message that its policy will remain extremely accommodative, market optimism in the US reflation trade is likely to ensure that the USD retains a resilient tone.” “The harsh rhetoric from both sides in the first high level face to face talks between China and US officials under the Biden Administration make clear that relations remain tense. This is also USD supportive.” “On the expectation that the Fed will have success in containing inflation fears and bond yields, we do see scope for EUR/USD to push back to 1.20 in the coming weeks. That said on expectations of a strengthening US recovery this year, we have lowered our 12-month forecast to 1.18 from a previous forecast of 1.23.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next The Graph Price Forecast: GRT mulls an over 30% upswing as it nears crucial demand barrier FX Street 9 months While economists at Rabobank concur with the Fed that rises in CPI inflation will be transitory, optimism in the US economic outlook contrasts with disappointment in the EU linked to the slow vaccine rollout The EUR/USD pair still risks a move back to 1.20, but it is seen trading at 1.18 on a 12-month view. Key quotes "While we continue to expect the Fed to battle with the markets in the months ahead to push through the message that its policy will remain extremely accommodative, market optimism in the US reflation trade is likely to ensure that the USD… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
