Economists at Rabobank discuss their forecasts for the EUR/USD pair for the coming moths.

Market has now built substantial EUR longs

“The market has now built substantial EUR longs meaning that the single currency will become increasing sensitive to the realisation that headwinds to Eurozone growth remain, albeit at a far more reduced level than was anticipated towards the end of last year.”

“While we expect EUR/USD to hold around 1.09 on a one-month view, we see scope for a move back to the 1.06 area into the spring.”