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 rema

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.