Friday, November 6, 2015

EUR/USD forecasts: it’s all about Payrolls – Commerzbank and Rabobank

FXStreet (Edinburgh) - EUR/USD is extending its sideline pattern below the 1.0900 handle on Friday against a backdrop of cautious trade in light of US Non-farm Payrolls due later.

Jane Foley, Senior Currency Strategist at Rabobank commented “we maintain that the timing and pace of Fed tightening into 2016 will guide the extent of any broad-based USD gains but that policy easing by other central banks will ensure the USD can continue to move moderately higher. On balance we see little reason to alter our long held forecast that EUR/USD will edge lower towards 1.05 medium-term”.

Furthermore, Axel Rudolph, Senior Technical Analyst at Commerzbank, noted the pair “has virtually reached the May and July lows at 1.0819/08, around which it may short term stabilise. The intraday charts are suggesting that this is likely to hold the initial test and we would partially cover short positions for now”.
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