The EUR/USD pair is trading in a clear direction in the short term, moving sideways around 1.0200. Looking ahead, Rabobank economists continue to see bearish potential for the euro on a one to three month perspective.
The dollar will continue to have support
“While we expect the EUR/USD 1.01 area to act as strong support going forward, we remain of the view that EUR/USD is likely to fall back below parity in one to three months’ time. However, for this to happen, USD strength will likely have to be complemented by another round of further EUR negative news.”
“In our view, the value of the USD is likely to remain firm until the risk-on currency environment improves. This suggests scope for a firm USD well into 2023.”
Source: Fx Street
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