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Euro To US Dollar Forecast: Sustained Higher Energy Prices Could Be "EUR Negative"
Foreign exchange strategists at Rabobank have recently highlighted a potentially overextended market bullishness on the Euro. The bank forecasts the Euro to Dollar exchange rate to trade "at 1.08 on a 3-month view." At the time of writing, EUR/USD was trading at 1.10237, a 0.42% rise on the daily opening levels. Central to their analysis is the belief that despite the current buoyancy in the market, the underlying fundamentals might not be in the Euro's favour. "While expectations of higher interest rate differentials are the textbook example of a currency supportive factor, in reality, higher rates may not be ... (full story)