Rabobank analyst Jane Foley said the euro is unlikely to rebound unless eurozone
activity data improves materially. She flagged that shifting market appetite for
the euro since last year has been an underappreciated driver of EUR/USD
volatility. Markets had been positioned for euro strength before Iran-related
conflict weakened eurozone growth prospects; without a marked improvement in
data, traders will find it difficult to rebuild euro bullishness. By contrast,
Foley expects the dollar to remain supported by a stronger-than-expected labor
market, resilient consumer spending and robust flows into US equities.
