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18 Mar 2013
Forex Flash: EUR/USD likely to visit 1.28 in 3m view – Rabobank
FXstreet.com (Barcelona) - The single currency is gradually pushing higher on Monday, slowly retracing the steep drop after the announcement of the bailout of Cyprus over the weekend.
Ahead in the week, the FOMC will hold its monthly gathering, and in the opinion of Jane Foley - Strategist at Rabobank - the greenback would likely found some support due to the recent improvement in the US economy.
“The Fed this week is due to update its economic projections and in light of the better trend in recent data releases, the Fed are likely to acknowledge the improvement… We continue to expect QE3 to continue until the end of the year. However, it is possible that the Fed may slow down the pace of assets purchases from its current $85 bln/month at an earlier stage. On the back recent better US data and given the risk of bad news from the Eurozone we expect to see dips to EUR/USD1.28 on a 3 mth view”, concluded the expert.
Ahead in the week, the FOMC will hold its monthly gathering, and in the opinion of Jane Foley - Strategist at Rabobank - the greenback would likely found some support due to the recent improvement in the US economy.
“The Fed this week is due to update its economic projections and in light of the better trend in recent data releases, the Fed are likely to acknowledge the improvement… We continue to expect QE3 to continue until the end of the year. However, it is possible that the Fed may slow down the pace of assets purchases from its current $85 bln/month at an earlier stage. On the back recent better US data and given the risk of bad news from the Eurozone we expect to see dips to EUR/USD1.28 on a 3 mth view”, concluded the expert.