Economists at ING revise their EUR/USD forecast lower.

1.15 EUR/USD forecast pushed back to the fourth quarter

“Sticky US inflation suggests that clear signs of disinflation may not emerge until the summer. We are therefore revising lower our EUR/USD forecast for the second quarter, where we now see volatility in a 1.05-1.10 range depending on the data. 

“We are pushing back our 1.15 EUR/USD forecast to the fourth quarter when our macro and rate strategy teams now look for the substantial compression in two-year EUR:USD swap differentials – a key driver of the spot rate.”