Trade war: Tensions between the US and China are likely to intensity again next year - Rabobank

Analysts at Rabobank expect that another wave of outflows from EM into the USD will take the EUR/USD pair to potentially drop towards 1.08 in 2020 due to the trade war.

Key quotes

"If the US economy is weakening it can be assumed that headwinds will be blowing over the rest of the global economy."

"As we move in 2020 it remains likely that other central banks will continue to increase monetary stimulus."

"By the end of the year, however, we expect an aggressive pace of Fed easing to lift EUR/USD towards the 1.12 area."