EUR/USD to edge lower towards 1.16 on Fed’s hawkish tilt – Rabobank

Market surveys suggest that the September, November and December FOMC meetings all appear to be in the running for the timing of a taper announcement from the Fed. Subsequently, economists at Rabobank have revised down their six-month EUR/USD forecast to 1.16 from 1.17.

1.17 target for EUR/USD on a three-month view

“For the rest of the month, thinned conditions could result in jumpy reactions in the USD to new news. In anticipation of some volatility and pullbacks in the market we have held our one-month EUR/USD forecast at 1.18.” 

“Since some movement in Fed policy is already priced-in, we have maintained our three-month forecast at 1.17.” 

“As the Fed transitions into its next policy phase, we have lowered our six-month EUR/USD forecast to 1.16 from 1.17.”