EUR/USD uptrend in late 2022 to be replaced by pullbacks and choppy trading conditions – Rabobank

Matías Salord FXStreet

Although analysts at Rabobank are forecasting that the DXY index could end the year a little lower, they expect that 2023 will provide plenty of opportunities for USD bulls to become re-engaged. They retain a 1-month forecast of EUR/USD 1.05 and a 3-month forecast of EUR/USD 1.03.

Key quotes:

“The first trading week of the year has already seen investors question some of the strongest themes of last month. Weaker European headline inflation data have raised questions about whether it will be necessary for the ECB to maintain the degree of hawkishness it displayed last month. By contrast, signs of resilience in US labour data underpin the Fed’s protests that it may be too early to bet on a US rate cut prior to the end of this year.”

“The plunge in USD long positions and the increase in long EUR positions into the end of last year suggests that the uptrend in EUR/USD that developed in late 2022 could be replaced by pullbacks and choppy trading conditions. We maintain our 3 month EUR/USD forecast of 1.03.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold rebounds to near $3,900 as Fed hike bets cap upside

Gold price edges at the start of a new week, reclaiming $3,900 during the Asian session and reversing a part of Friday's heavy losses to its lowest level since October 2025. The upside potential, however, seems limited as elevated oil prices and inflation concerns keep Fed rate hike bets firmly on the table.

Zcash rebounds as ZODL founder now supports ending community grants

Zcash (ZEC) shows signs of recovery on Monday, extending gains above $1,250 as the Zcash Open Development Lab (ZODL) founder, Josh Swihart, now supports the compromise proposal to end the 8% block reward share directed to Zcash Community Grants (ZCG).

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.