FXStreet reports that economists at the National Bank of Canada see the EUR/USD pair trading in a range of 1.23-1.25 in the second half of the year. 

“The latest report on 12-month headline inflation in the Eurozone showed it at 0.9%, up significantly from the -0.3% of December. Although likely to be transitory, this spike could alleviate concern about deflationary pressure coming from the exchange rate. The euro is likely to be weaker in the first quarter of the year given weakening of the global economy (broad-based USD increase) and statements made by central bankers.”

“All in all, we see the euro trading in a range of 1.23-1.25 in the second half of the year. This forecast assumes no further ECB rate cuts.”