EUR/USD currently stands only slightly above the levels traded at the start of the year. Economists at Rabobank expect the 1.06 level to offer psychological support

Scope for the USD to remain well supported into the middle of the year

“In terms of USD sentiment, February has clearly offered something of a sea-change relative to last month. It is our expectation that this has further to run.”

“Given our expectation that the FOMC is likely to take the top of the target range for the Fed Funds to 5.5%, we see scope for the USD to remain well supported into the middle of the year.”

“1.06 can be expected to offer psychological support. Below this the year’s low at 1.0484 is likely to offer strong support.”