Rabobank Raises Euro Forecast Amid August Gains
The Euro to Dollar (EUR/USD) exchange rate has been on an upward trend in August, gaining roughly 1.15%. The sharp mid-week jump took the pair as high as 1.1711. However, not everyone is confident about the euro's continued strength.
Rabobank, a well-respected financial institution, has revised its forecasts downward for the dollar but has also brought forward its EUR/USD target to next spring. According to Rabobank, the new one-to-three-month projection stands at 1.16, up from its previous estimate of 1.15.
This seems counterintuitive as spot prices are already above 1.16. The more significant change comes in their forecast for the future. Rabobank now expects the EUR/USD exchange rate to reach 1.18 next spring, a target it previously had set for later in the year.