A forecast for euro against the USD to fall to 1.10 before the end of this year.

Well, yeah. Not like there is far to go.

The forecaster, to be fair, has been calling it lower from a lot higher than here. After 1.10:

  • Rabo then expect it to trade to 1.15 on a 12 month horizon

Say the moves in Germany could prove supportive:

  • perhaps the German government will bow to calls of a fiscal belt loosening has breathed a little support into the EUR

On the European Central Bank:

  • In September it is likely that the outlook for the Eurozone and the reactions of the ECB will be instrumental in determining the direction of EUR/USD

On Italy:

  • the market has reacted well to the assumption that Italy could avoid a snap election and another budgetary battle with the EU in the near term
  • Italian politics combined with Brexit risks remain potentially negative factors for the EUR

On the Fed:

  • our expectation that the pace of Fed rate cuts are likely to accelerate in 2020 suggest that there is still scope for EUR/USD to head a little higher medium-term and we maintain our forecast of 1.15 on a 12 month view