While analysts at Rabobank predict that the DXY may end the year slightly lower, they expect 2023 to offer plenty of opportunities for USD bulls to join. They maintain the 1-month EUR/USD forecast at 1.05 and the 3-month EUR/USD forecast at 1.03. KEY QUOTES: „In the first trading week of the year, investors were already questioning some of the stronger themes of the previous month. Weaker European headline inflation data raised questions about whether the ECB needs to maintain the dovishness it showed last month . Instead, signs of resilience in US jobs data are supporting protests from the Federal Reserve that it may be too early to bet on cutting US interest rates before the end of this year. „The decline in long dollar positions and the increase in long EUR positions at the end of last year suggest that the upward trend in EUR/USD that developed at the end of 2022 may be replaced by a pullback and volatile trading conditions. We maintain the three-month EUR/USD forecast at 1.03.