EUR/USD seen at 1.15 as US outlook weakens – Rabobank

FXStreet Insights Team FXStreet

The resilience of the US economy in recent years was interpreted by many investors as a demonstration of US ‘exceptionalism’, Rabobank's FX analyst Jane Foley notes.

Greenback’s global lead remains intact for now

"The surge in US recession fears that followed Trump’s tariff announcements on April 2 sparked a rapid exit from ‘exceptionalism’ trades, which overpowered the USD’s traditional safe-haven attraction. While other currencies are set to continue chipping away at the USD’s dominance as the global reserve currency, the greenback is set to maintain a clear lead for many years to come."

"In line with this, we expect that the USD’s safe haven character can be restored in the months ahead. The exact timing will likely depend on whether US recession risks increase or disperse, since this will guide net flows in and out of USD assets. On the back of the weakened outlook for the US economy we maintain 12-month forecasts of EUR/USD1.15 and USD/JPY140.00."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD pops to yearly highs near 1.1770

EUR/USD rapidly reverses course and hits fresh YTD tops near 1.1780 at the end of the week. The pair’s U-turn comes on the back of the intense sell-off in the Greenback amid the generalised risk-on context.

GBP/USD climbs to four-month tops near 1.3600

GBP/USD is building on its solid weekly advance and is pushing toward the 1.3600 hurdle on Friday, or new four-month peaks. Cable’s strong move higher comes as the Greenback intensifies its decline, while auspicious results on the UK calendar also collaborate with the uptrend.

Gold picks up pace, approaches $5,000

Gold prices keep their uptrend well in place and gear up for an imminent hit to the key $5,000 mark per troy ounce on Friday. The yellow metal’s sharp advance gathers pace amid the increasing weakness in the US Dollar and mixed US Treasury yields across the curve.