The report evaluates the EUR's diminished momentum following the dissipation of optimism regarding German fiscal reforms. RaboResearch anticipates sideways trading for EUR/USD in the near term.
Key Takeaways
- 1.Optimism surrounding the EUR has faded due to concerns over German fiscal management and weak growth.
- 2.Market expectations for another ECB rate hike are fully priced in, limiting upside support for the EUR.
- 3.RaboResearch expects EUR/USD to trade sideways in the short term, with a potential modest upward bias in 3-6 months.
Table of Contents
- FX Update
- Disclaimer
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Authors
Jane Foley
Securities
EURUSD
Themes
ECB Monetary PolicyGerman Fiscal Policy
Regions
EuropeGermanyUnited StatesChina