Since mid-February, the EUR/USD has been on an upward trajectory. Analysts at Rabobank provide insights into the pair’s future outlook.
Similar policy responses between both the Fed and the ECB to limit volatility in the months ahead
The US Dollar is still notably weaker compared to the levels seen at the beginning of last week, prompting speculation about whether the USD has more room to decline or if buyers will be enticed to re-enter the market. Today’s improved sentiment suggests a greater likelihood of the latter scenario.
The next technical hurdle is situated at last week’s peak within the 1.9070/1.0980 range, with a key psychological level at 1.1000 looming thereafter.
The potential for comparable policy responses from both the Federal Reserve (Fed) and the European Central Bank (ECB) throughout the year may act as a mitigating factor for volatility in EUR/USD in the coming months. Nevertheless, as we transition into the second half of the year, attention is likely to shift towards the US election and the prospects for growth and interest rate differentials heading into 2025.
