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11 Dec 2013
Flash: EUR/USD could remain above 1.30 for another 9 months – Rabobank
FXstreet.com (London) - Jane Foley, Senior Currency Strategist at Rabobank explained that EUR could remain above 1.3000 for another 9 months.
Key Quotes:
“While we anticipate that EUR/USD could find its way back to 1.28 on a 12 moth view, we expect that it could take another 9 mths or so to break below 1.30. Near-term, key resistance for EUR/USD at the year’s high at 1.3832”.
“Not only have USD bulls been forced to be patient during 2013, but the EUR is now a more resilient currency in its own right. Last night EZ finance ministers reached a draft understanding on how a system for winding down failing banks could work. The deal could be agreed in a week’s time. The news is another move towards banking union, which was widely mooted as a necessary factor for underpinning the long-term sustainability of EMU”.
“…the political health of the Eurozone has strengthened during 2013 so has its current account surplus; this too is another key support for the EUR”.
Key Quotes:
“While we anticipate that EUR/USD could find its way back to 1.28 on a 12 moth view, we expect that it could take another 9 mths or so to break below 1.30. Near-term, key resistance for EUR/USD at the year’s high at 1.3832”.
“Not only have USD bulls been forced to be patient during 2013, but the EUR is now a more resilient currency in its own right. Last night EZ finance ministers reached a draft understanding on how a system for winding down failing banks could work. The deal could be agreed in a week’s time. The news is another move towards banking union, which was widely mooted as a necessary factor for underpinning the long-term sustainability of EMU”.
“…the political health of the Eurozone has strengthened during 2013 so has its current account surplus; this too is another key support for the EUR”.