Lacklustre dollar will help EUR/USD climb – CBA

EUR/USD is expected to trade at $1.20 by mid-2018 and hit $1.30 on a longer time horizon

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Supporting the euro: Europe’s very large current account surplus is a greatly under-appreciated factor

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The US dollar is showing scant signs of recovery against the euro, as weak US inflation trends continue to weigh on the greenback, according to Joseph Capurso, a currency strategist and economist at Commonwealth Bank of Australia.

While the reversal of the so-called ‘Trump trade’ has been one of the main reasons for the weakness in the US dollar this year, additional pressure is to be expected if the Federal Reserve slows the pace of its tightening cycle and hike

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