Rabobank: EUR/USD to drift downwards in the months ahead

Rabobank analysts explain that the EUR/USD pair slipped below the 1.12 level for the first time since June 2017 as the dovish signals from ECB weighed on the single currency.

Key Quotes

“Over the medium-term the accommodative position of the ECB should help breath life back in the Eurozone economy.”

“That said, in absence of an improvement of economic data we expect that EUR will remain out of favour and expect EUR/USD to drift downwards in the months ahead.”

“We maintain our forecast of #EURUSD 1.12 on a 3 month view & have lowered our 6 month forecast to 1.10.”