Euro-Dollar Risks Are Shifting to the Upside Says Goldman Sachs 

The Euro-to-Dollar exchange rate ended its best week since November on Friday having been lifted by what appeared to be investors' profit-taking on earlier wagers against the single currency, although recovery road is likely a long as well as winding one, implying choppy trading ahead for EUR/USD over the coming days. 

The Euro's decline against the Dollar is not yet over according to new research, however the Eurozone's single currency will nevertheless still stage a recovery into year end.

The Dollar's rebound is ending as foreign exchange markets undergo a "turnaround" in logic, say foreign exchange strategists at UniCredit Bank.

The Euro-to-Dollar rate was finding its feet above 1.18 on Tuesday amid indications from the charts that its correction lower has all but run its course.

Foreign exchange analysts at two leading global investment banks are looking through the Euro's recent weakness and tell clients they see the single currency rebounding in tandem with an acceleration in the EU vaccination programme.

The European Central Bank (ECB) is increasingly likely cut interest rates in the near future says a major European lender and investment bank, a move that would only widen the gulf on interest rate policy with the Federal Reserve and pressuring the Euro lower against the Dollar in the process.