In the view of the analysts at Goldman Sachs, EUR/USD is set to continue to be in a acquainted vary between 1.1600-1.1800 over the coming year.
“We now forecast that EUR/USD will stay roughly range-bound over the coming year, achieving 1.16 in 3m and 1.18 in 12m (vs. 1.25 previously). “
“If US inflation falls beneath 2% subsequent year-e.g., due to the fact items fees decline greater than expected-the Fed ought to continue to be on maintain for a longer period, reopening the opportunity of EUR power vs USD. “
“Despite a superior greenback in general, we do anticipate understanding vs. USD for sure commodity exporters and pick out EM and G10 crosses.”
“Moreover, we proceed to see structural weak spot for the wide dollar, due its excessive valuation, decreased US asset market outperformance, and new threats to the greenback’s global position from the opening of the Chinese bond market and different factors.”