Economists at Goldman Sachs upgrade their three and six-month forecasts for the EUR/USD pair. However, they stick to their 12-month forecast of 1.10.

Less favorable tightening mix for the Dollar in the near term

“We are revising up our three and six-month EUR/USD forecasts to 1.05 (from 1.02 previously) to account for the recent deterioration in the US growth outlook and less favorable tightening mix for the Dollar.”

“We are maintaining our 12-month EUR/USD forecast at 1.10; we expect that still-limited economic slack and rising recession risks cut against more meaningful Dollar downside.”