EUR/USD Forecast from Rabobank

The Rabobank analysts remain very cautious on EUR/USD in 2018 forecasting in just off its current spot price at $1.12000.

While a number of different aspects could affect EUR/USD, analysts in Rabobank count with the current interest rate hiking cycle being priced in the FX market and possible earlier QE exit from the ECB to support EUR/USD.

Key quotes:

• "While we are optimistic regarding the prospects for the USD vs. a range of global currencies. However, without a significant surge in the US inflation, the US Dollard could be bogged down by soggy bond yields meaning there could be only wavering support for the greenback on some crosses."
• "For EUR/USD we retain a target of 1.20 for 2018, though since the market is already long of EURs we do see a risk that significant gains above this level could be difficult to achieve."