Eurusd To Move Lower Rabobank

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Eurusd To Move Lower Rabobank

Eur/Usd To Move Towards 1.12

According to Rabobank, the EUR/USD is stuck in a range between 1.06 - 1.10, but the time has come for the pair to get out of it.

In the next 3 months, the EUR/USD will likely be around 1.1200 as the Federal Reserve is now changing its policy. Also, the labor market data from August, along with the upcoming CPI inflation, means more volatility for the US Dollar.

Eur/Usd Will Be Bearish In 6 Months

Amidst all of this, it makes sense for the EUR/USD to be near 1.1200. For now, the EUR/USD is trading at around 1.1189, which means the forecast price for the next 3 months is just above the current levels.

As for chances of a pullback in EUR/USD, the chances are present if the US data for September shows a strong print. Rabobank's analysts also added that the Federal Reserve will likely introduce 4 back-to-back rate cuts.

Considering the upcoming rate cuts, which are now a certainty after the Powell comments, Rabobank has also updated their 3 and 6-month forecast for the EUR/USD.

Rabobank believes that the 3-month forecast for the EUR/USD is around 1.12. Similarly, the EUR/USD pair will likely turn lower towards 1.09 in a 6-month timeframe.

The 9-month forecast for the EUR/USD is around 1.10, according to Rabobank. Over the 12-month period, the expected trading price of EUR/USD is also 1.10.

As for what will drive the US Dollar's strength against the Euro in the coming months, Rabobank believes that it will be related to inflation levels.

The US election outcome will likely provide another boost to the country's inflation levels. As a result, the central bank will have to temporarily stop the rate cuts or even think about potential rate hikes.

Overall, the Rabobank forecast shows that the EUR/USD pair will likely be trading at the same level or even lower in the coming months. However, if the ECB shows hesitation in lowering the policy rate, it could also invalidate the Rabobank's forecast.

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