Goldman Sachs Research discusses EUR/USD outlook.

";The Euro has found some relief from the global rally in duration, and the earlier contagion in sovereign spreads has partly relaxed. Through the “ups” of August and “downs” of the last few weeks, we have maintained our forecasts for the Euro to trade around 1.12-1.14 over the coming year because we think solid global growth and broadly synchronized policy should translate to relatively limited FX spot returns, and European fundamentals today are very different to past episodes of EA sovereign credit stress," GS notes.

"We still see some challenges ahead, but over the next few months clarity on natural gas reserves for winter and a firmer foothold from global duration on the back of cooling US inflation pressures should be tailwinds for the Euro," GS adds.