In his weekly forex review for FX-MM, Natixis’ senior forex analyst, Nordine Naam, believes that very few obstacles stand in the way of the greenback’s appreciation.
Indeed, the U.S dollar’s rally continues on the back of both Donald Trump’s sliding position in the U.S. presidential polls and promising macroeconomic indicators. In this respect, Naam believes only a shock presidential election victory for Trump or weak employment figures can halt the U.S. currency’s rise.
Meanwhile, Naam’s predictions for the euro remain downbeat following ECB president, Mario Draghi’s refusal to rule out extending quantitative easing (QE) until September 2017. In the short-term, Naam predicts the EUR/USD could test 1.0780 – driven by both weak eurozone inflation and growing expectations that the U.S. Federal Reserve will tighten monetary policy in 2017, which are only supporting the dollar’s ascent.
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