There’s a risk of EUR/USD dipping back to the 1.10 level in the coming weeks, Rabobank’s FX analyst Jane Foley notes.

ECB is likely to cut rates later this month

“Safe haven demand may play a role in supporting the greenback. In addition, US growth continues to outpace that of the Eurozone.”

“Recent signs that inflation is ebbing further in various Eurozone countries have supported expectations that the ECB is likely to cut rates later this month and this could weigh on the EUR.”

“Additionally, French budget concerns may highlight some of the structural issues in the region.”