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14 Feb 2013
Forex Flash: EUR has a weak hand in the currency wars; EUR to end year on a firmer note - Rabobank
Following the 1,000 pips strengthening from November lows at 1.2660 to reach 15-month highs at 1.3710 the February 1st, the EUR/USD has been trading lower to price today close to the 1.3300 frontier.
Currently the EUR/USD is trading at 1.340 and indicators points bearish, but Rabobank's Senior Currency Strategist Jane Foley sees the EUR ending the year or a firmer note as they argue that the euro has a weak hand in the currency wars. "In essence this means that currency wars will continue as long as the economic environment is characterized by weak growth and low inflation."
"While there is a risk that Eurozone tensions will re-ignite in the next few months and drag the EUR lower, we expect that the EUR will end the year on a firmer note," points Foley
On a 12 month view, Raboabnk expects "EUR/JPY in the region of 133 and EUR/USD at 1.40."
Currently the EUR/USD is trading at 1.340 and indicators points bearish, but Rabobank's Senior Currency Strategist Jane Foley sees the EUR ending the year or a firmer note as they argue that the euro has a weak hand in the currency wars. "In essence this means that currency wars will continue as long as the economic environment is characterized by weak growth and low inflation."
"While there is a risk that Eurozone tensions will re-ignite in the next few months and drag the EUR lower, we expect that the EUR will end the year on a firmer note," points Foley
On a 12 month view, Raboabnk expects "EUR/JPY in the region of 133 and EUR/USD at 1.40."