As a result of the last European Central Bank meeting, analysts at Rabobank revised EUR/USD forecasts to the upside. Now they expect the pair to drop to 1.11 by mid-year down from their previous target of 1.10

Key Quotes: 

“We have moderated our EUR/USD forecasts in light of the hawkish pivot at the ECB’s February policy meeting. However, we don’t see the USD’s bull run as being over yet. Previously, we were forecasting that EUR/USD would drop to 1.10 by mid-year as the Fed’s tightening commenced. In light of the ECB’s hawkish tilt we have revised this forecast up moderately to 1.11.”

“We have also brought forward our medium-term projections for the recovery in EUR/USD. We now forecast EUR/USD at 1.15 on a 1-year view from a previous forecast of 1.12.”