EUR/USD to drop back towards 1.10 – Rabobank

There is a risk that EUR/USD could fall back to the 1.10 level in the coming weeks, notes Jane Foley, currency analyst at Rabobank.

The ECB is likely to cut interest rates later this month

“The safe haven claim can play a role in supporting the green card. In addition, US growth continues to outpace that of the Eurozone.”

“Recent signs that inflation is falling further in various eurozone countries have supported expectations that the ECB could cut rates later this month, and that could hurt the euro.”

“Furthermore, concerns about the French budget may highlight some of the structural problems in the region.”