FXStreet reports that Jane Foley, Senior FX Strategist at Rabobank, suggests that EUR/USD, the world’s most popular currency pair, could fall to 1.17 and below.

“The surge in jobs creation last month combined with the uptick in wage inflation and some hawkish comments from various Fed officials could be sufficient to keep the USD on the front foot into the Fed’s Jackson Hole symposium later this month. This assumes firms readings for the US CPI and PPI inflation reports due later in the week.” 

“We assumed that perceived inflation risks in the eurozone and expectations around ECB policy were likely to remain much more contained. While this assumption has held up well, the ground has shifted a fair degree since the spring. In our view, this raises the risk of a breach below 1.17.”