Forex Flash: EUR/USD year-end target revised to 1.40 – Rabobank

The single currency is bouncing off session lows in the mid 1.3500s on Monday, gathering some traction to trade back to the 1.3570 as risk aversion is taking a breather.

Jane Foley, Chief Currency Strategist at Rabobank, commented that the cross breached the bank’s former target of 1.3500 sooner than expected, and the bank has now revised up its year-end target to 1.40

“We have revised our 12 mth EUR/USD forecasts to 1.40 to reflect both our negative USD view and the expectation that the EMU crisis will continue to lurch towards a solution, but we do not think that the road ahead will be smooth. On the anticipation that tension in the Eurozone will raise its head again, we see risk for a potentially aggressive pullback in EUR/USD before 1.40 is in the sights”, explained Foley.