Risks should not be disregarded, USD buyers to prevail, EUR/USD to fall to 1.16
The headline is the very brief summary of Rabobank on the euro, the bank looking for a drop
- We expect a pullback towards the EUR/USD 1.16 area in the weeks ahead
- Given concerns over a second wave of coronavirus and fears about what that could do to the global economy in addition to rising China tensions, we see risk that the recent rush to unload USDs may have extended too far.
- The world's need for dollars almost certainly means that there will be a scurry to secure USD funds on any further breakdown in market confidence.
I posted earlier an alternative view for the euro … have to say I prefer it: