EUR/USD: Potential to dip back to the 1.05 region over the coming quarter – Rabobank

Economists at Rabobank expect the Euro to weaken in the coming months.

A weaker EUR could help support the reforms needed to boost the competitiveness of the EU

The European Commission is currently focused on improving the competitiveness of the EU. At the centre of these concerns is the stagnating German economy. If the ECB can contain inflation going forward, a weaker EUR could help support the reforms needed to boost the competitiveness of the EU.

On a 1-to-3-month view, we see the potential for EUR/USD to dip back to the 1.05 region. 

On a long-term horizon, we see greater chance of EUR/USD trading in a 1.04-1.12 range, than managing a return to levels above 1.22.