Through most of this year, EUR/USD has been contained by a 1.10 to 1.06 range, Rabobank’s Senior FX Strategist Jane Foley notes.
EUR/USD set to trade at 1.12 on a 3-month scale
“This month’s break higher and the advent of a new policy cycle for the Fed suggests that a new range is in the process of being drawn out. The forthcoming releases of US August labour data and the next round of US CPI inflation numbers suggest scope for volatility in the US Dollar (USD) crosses near-term as the market finetunes its expectations for the size of the Fed policy decision in September.”
“We see scope for pullbacks potentially to EUR/USD1.10 if key US data in early September prints on the firm side of market forecasts. That said, on the back of Rabo’s revised view that four consecutive Fed rate cuts may be on the cards, we have revised up our 3- and 6-month EUR/USD forecasts to 1.12 and 1.11 respectively from 1.09.”
We have left our 9- and 12-month EUR/USD forecast at 1.10 on the assumption that US inflation fears could be given another boost next year as a consequence of the US election outcome.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD breaks below 1.0400 due to renewed US-EU trade tensions
EUR/USD continues its decline for the third consecutive day, trading near 1.0390 during the early Friday. The pair weakens as the risk-sensitive Euro faces selling pressure amid heightened risk aversion following renewed US-EU trade tensions.

Bitcoin, Ethereum, and Ripple continue to sell off
Bitcoin price continues declining on Friday after falling more than 15% this week. Ethereum and Ripple followed BTC’s footsteps and declined by nearly 24% and 21%, respectively.

GBP/USD holds below 1.2600 as US PCE inflation data looms
The GBP/USD pair extends its downside to near 1.2580 during the early European session on Friday. Tariff uncertainty from US President Donald Trump undermines the Pound Sterling against the US Dollar.

Gold price remains depressed near two-week low amid modest USD strength
Gold price attracts sellers for the second straight day amid a broadly stronger USD. The risk-off mood and sliding US bond yields do little to support the precious metal. Traders now look forward to the US PCE Price Index for some meaningful impetus.

February inflation: Sharp drop expected in France, stability in the rest of the Eurozone
Inflation has probably eased in February, particularly in France due to the marked cut in the regulated electricity price. However, this overall movement masks divergent trends. Although disinflation is becoming more widespread, prices continue to rise rapidly in services, in France as well as elsewhere in the Eurozone.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.