Forex Flash: EUR/USD likely to remain sideways - Commerzbank

FXstreet.com (San Francisco) - The EUR/USD managed to touch a fresh 2-year low of 1.2162 Friday, but bounced back above the 1.22 mark on weaker than forecast Consumer Sentiment data out of the US, last at 1.2236 ahead of the weekly close. 

In the long run though, “euro will continue to suffer due to the disagreements in the euro zone but concerns about QE3 will limit the upward potential of the US dollar despite its role as a safe haven in times of uncertainty,” explains Ulrich Leuchtmann, economist at Commerzbank. “As a consequence the sideways trade in EUR-USD is likely to continue, with the downward trend dominating as the market is waiting for (what is likely to be negative) news from the euro zone. The euro is also likely to remain weak against the other currencies.”