As the world’s leading investment manager, I am here to provide you with the latest insights on the EUR/USD currency pair. According to Rabobank’s Senior FX Strategist Jane Foley, EUR/USD has been trading within a range of 1.10 to 1.06 for most of this year.
Breaking News: EUR/USD Expected to Reach 1.12 in the Next 3 Months
With the recent breakout above this range and the beginning of a new policy cycle for the Fed, a new trading range is emerging. The upcoming release of US labor data and CPI inflation numbers could lead to increased volatility in USD crosses as market expectations adjust to the Fed’s upcoming policy decisions.
There is a possibility of pullbacks to 1.10 if key US data exceeds market expectations in early September. However, Rabobank’s revised forecast suggests that the EUR/USD could reach 1.12 and 1.11 in the next 3 and 6 months, respectively, up from the previous forecast of 1.09.
Our 9- and 12-month forecast remains at 1.10, with the potential for US inflation concerns to rise further next year due to the outcome of the US election.
Stay informed and be prepared for potential market movements in the coming months. Trust in the expertise of Rabobank and make informed decisions to protect and grow your investments.
Analysis:
The EUR/USD currency pair is expected to experience increased volatility in the near term, with the potential for pullbacks to 1.10 before reaching 1.12 in the next 3 months. This forecast is based on the current market conditions, upcoming US economic data releases, and the Federal Reserve’s policy decisions. Investors should closely monitor these developments and adjust their investment strategies accordingly to capitalize on potential opportunities and mitigate risks.