Rabobank - "The better tone of the US dollar on the back of the strong February jobs report begs the question as to how much further upside potential the greenback has. Interestingly, despite an event packed few days there has been little net movement in EUR/USD since the start of this month. The EUR has remained remarkably sanguine in the wake of the disappointing Italian election result a couple of weeks ago and the USD index has lacked strong direction so far in March. Based on the assumption that confidence in the sustainability of EMU will strengthen in the medium-term, we maintain a forecast that EUR/USD could climb to the 1.40 area on a 12 mth view.
(...) On balance, while we have revised lower our 1 to 6 mth EUR/USD forecasts the changes are modest (1m 1.30; 3m 1.28; 6m 1.34; 9m 1.37; 12m 1.40). We have edged our 3 mth forecast lower to 1.28 from 1.30. That said, we maintain our view that over the next few weeks EUR/USD is likely to a maintain a jittery range around the EUR/USD1.29 to 1.32 region."