The lack of volatility in EUR/USD of late does not necessarily mean it will stay so for too long. The team at Goldman Sachs describes a “dollar story” for the pair heading into year-end, and sets cascading targets going forward: Here is their view, courtesy of eFXnews: Motivation for Our FX View: We continue to believe that EUR/USD will move lower on diverging growth, inflation and monetary policy outlooks. In the near term, we expect the ECB to announce an extension of the asset purchase programme at the current pace until the end of 2017, but no other additional measures. Thus, till year-end, EUR/$ is mainly a Dollar story. Despite this and the recent strength, the EUR has weakened significantly over the past two years, and we think this EUR weakening trend has a long way to run. We see a couple of longer-term fundamental forces at work. First, the flow picture should turn increasingly EUR-negative as Euro area residents send funds abroad and reserve managers allocate away from the EUR. Second, we think there is a structural element to disinflation in the periphery as it continues to improve competitiveness compared with the core of the Euro area. As a result, our view is that inflation will be slower to pick up than during a normal cycle, in line with projections from our European team, which show HICP inflation still at 1.3% in 2018Q4. This should keep ECB policy accommodative, maintaining downward pressure on the EUR. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. EUR/USD Targets: EUR/USD forecasts at 1.08, 1.04 and 1.00 in 3, 6 and 12 months. Things to Watch: Lack of implementation of fiscal and structural reforms remain a key risk. A shift towards more credit easing from the ECB could also be a headwind for our weaker EUR view. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next GBP/USD at new 31-year low – what’s next? Yohay Elam 6 years The lack of volatility in EUR/USD of late does not necessarily mean it will stay so for too long. The team at Goldman Sachs describes a "dollar story" for the pair heading into year-end, and sets cascading targets going forward: Here is their view, courtesy of eFXnews: Motivation for Our FX View: We continue to believe that EUR/USD will move lower on diverging growth, inflation and monetary policy outlooks. In the near term, we expect the ECB to announce an extension of the asset purchase programme at the current pace until the end of 2017, but no other additional measures.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.