Rabobank - "While we revised up our USD forecasts modestly on the back of last Friday’s better jobs data, relative to the consensus, we remain cautious on the outlook for the USD going forward. In his recent testimony, Bernanke made it very clear that he was concerned about the impact on growth from fiscal headwinds. He warned that budgetary consolidation that was currently drawn into law in the US could equate to the loss of 750K potential jobs this year. This tone implies that the Fed will not be quick to signal any withdrawal from its current policy of open ended QE and, in turn, this should continue to place a firm check on any USD recovery attempts.
The FOMC meeting on March 20 will be carefully watched for any fresh policy clues. Meanwhile we continue to expect EUR/USD to trade mostly within a jittery range in the 1.32 to 1.29 region, though we see risk of a dip towards the 1.28 region on a 3 mth view."