The Euro (EUR) is the third best performer in the year to date after the US Dollar (USD) and the Pound Sterling (GBP). Economists at Rabobank analyze EUR/USD outlook.
While we acknowledge that the EUR has been more resilient than we expected so far this year, we still see fundamentals as favouring the USD.
We maintain our three-month forecast of 1.0500 and remain of the view that there is a higher chance of EUR/USD remaining in a 1.0400 to 1.1200 range over the next 18-24 months or so, than of the currency pair holding levels above 1.1500.
Our three-month forecast of 1.0500 is followed by an expectation of a moderate move higher to 1.0900 early next year as Fed rate cuts are extended.
