EUR/USD has repeatedly failed to hold below the 1.1550 area this month. Some pullback or consolidation is not exceptional, therefore, economists at Rabobank stick to the view of lower EUR/USD ahead.

EUR/USD still seen at 1.15 on a three-month view

“We are viewing the current pullbacks in the USD as corrective and continue to expect the USD to push higher over the medium-term.”

“While the recent sell-off in the EUR suggests it may be more sensitive to hawkish remarks from ECB members in the build-up to forthcoming ECB meetings, the cautious stance of the policy guidance from the central bank suggests that room for a concerted recovery in the EUR is still limited.”

“On the margin, the approach of the French Presidential election next year and the tensions regarding the rule of law between the EU and Poland and Hungary may also weigh on the EUR going forward.”

“We retain our three-month forecast of EUR/USD 1.15.”