Dutch International: Euro recovery may take time.

Francesco Pesole of the Netherlands International Group stated that following the release of weak US non-farm payroll data on Thursday, the moderate rise of the euro against the dollar highlighted the lack of a convincing positive narrative for this single currency. In a report, he indicated that this modest increase largely reflects market doubts about the European Central Bank raising interest rates again. He mentioned the risk that the market may stop betting on all ECB rate hikes before betting on the Fed's tightening policy. He also mentioned that reducing bets on Fed rate hikes could still support the euro against the dollar, as this exchange rate is more responsive to US interest rates, but its recovery may be slow. The euro rose 0.2% to $1.1453, and the Netherlands International Group predicts that it will not rise above $1.16 until late summer.