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Forex Flash: Risk of potentially aggressive dips in EUR/USD over the summer - Rabobank

By FXstreet.com,  June 22, 2012, 05:02:00 AM EDT

FXstreet.com (Barcelona) - Moody's had warned back in February that it was reviewing the ratings of 17 banks, so, according to Jane Foley, senior FX strategist at Rabobank: "Last night's announcement of downgrades for 15 banks with global capital market operations was a long time coming."

"EUR/USD may be trading off its early lows already, but the Moody's' news is a further reminder of the stresses on the world's financial system and is worthy of the pull back of risk appetite evident overnight." She explains.

In this environment, "investors are unlikely to steer to far from their USD longs. We continue to see risk of potentially aggressive dips in EUR/USD over the summer." Foley forecasts.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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