Dutch Cooperative Bank: The euro may struggle to rebound unless the growth prospects of the eurozone improve.

Jane Foley, an analyst at Rabobank, pointed out that the euro may struggle to rebound unless there is a significant improvement in economic activity data in the eurozone. She stated that market sentiment towards the euro has been fluctuating since last year, and this factor has played an underestimated role in the volatility of the euro against the US dollar exchange rate. She noted that before the Iran crisis weakened the growth prospects of the eurozone, the market had bet on a stronger euro; if eurozone data does not improve significantly, traders will find it difficult to regain their optimism towards the euro. In contrast, she believes that the US dollar will continue to be supported, thanks to better-than-expected labor market performance, a resilient consumer sector, and strong inflows of funds into US stocks.