EUR/USD likely to trade a 1.02 to 1.12 range on a 12-24 month view – Rabobank

On a one-month view, the EUR is the second worst performing G10 currency after the USD. Economists at Rabobank analyze EUR/USD outlook.

EUR/USD at risk of dipping back to the 1.05 area on a three-month view

Weakness in the German economy is likely to weigh on the outlook for the EUR through the next business cycle and beyond.

We see risk of EUR/USD dipping back to the 1.05 area on a three-month view.

On a 12–24-month view, we see EUR/USD as more likely to trade a 1.02 to 1.12 range, which is well below most model based estimates of fair value, than to push back above the 1.20 level.