Rabobank - "The week may have got off to a slow start due to the closure of many Asian markets but, despite a thin economic calendar today, the week promises to be an interesting one not least for EUR/USD.
(...) Our weak USD outlook is a key reason why we see scope for EUR/USD to push towards 1.400 on a 12 mth view. The fact that we see the EUR has having a weak hand in the currency wars is another. That said, the pace of January’s rise in EUR/USD was faster than we had expected and left us concerned that the degree of investor optimism was out of kilter with economic developments. Over the next few weeks we expect a consolidative tone to be maintained in EUR/USD. However, news from Spain, Italy or even Cyprus has the capacity to create a deeper correction in EUR/USD over the coming months meaning that there is a good chance that EUR/USD1.300 will be seen again before the EUR musters up the energy to launch itself at 1.400."