The market has gone very long for the EUR, and this exposes the EUR/USD to the possibility of strong setbacks. Rabobank economists see the pair at 1.06 three months ahead.
EUR/USD one-month forecast at 1.09
“While disappointing Eurozone data could trigger Euro reversals, given lower energy prices, we expect the market to look further afield. EUR/USD reversals will most likely be triggered by continuation of hawkish stance from Fed officials. That said, given the pace at which US headline inflation has fallen from its recent highs, the market may continue to largely ignore the Fed hawks for a while longer”.
“We see plenty of opportunities for USD bulls to recommit, especially on a three to six month outlook. However, to reflect the change in fundamentals, we have raised our EUR/USD forecasts from levels previous.”
“Following a 1.09 one-month forecast for EUR/USD, we see room to return to 1.06 three months ahead. This assumes the Fed sticks to its no rate cut forecast until 2024.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
