EUR/USD to push higher if Powell soften his tone – Rabobank EURUSD Fed Banks
has been pivoting around the 1.13 level since mid-November. In the view of economists at Rabobank, it is likely that the direction of the pair in the short term will be taken from the tone adopted by Fed Chair Powell in his post FOMC meeting press conference today. volatility
“Overall, current long USD positions will continue to leave EUR/USD vulnerable to pullbacks. However, given the continued divergence in Fed and ECB policy in addition to the potential support to the USD from safe-haven flows, we would favour selling rallies in EUR/USD with the view that the USD can strengthen further into the middle of the year.”Information on these pages contains forward-looking statements that involve risks and uncertainties.