Does not augur well for active trading in the euro if so!
Snippet via Rabo,
- As the winter approaches many policymakers in various countries are wary that some increase in covid related restrictions may still be necessary despite the growing vaccination rates
- Fed hawk Kaplan last week indicated that a rise in Delta cases could make him rethink the timing of his support for tapering. While this would be a USD negative factor on one hand, delta worries may simultaneously increase the safe-haven appeal for the USD
- On balance, while pullbacks are likely to be par for the course, we see scope for EUR/USD to head towards 1.16 on a six-month view
