Rabobank Forecasts EUR/USD Decline to 1.14 Amid Rising Geopolitical Risks

Key Facts

1The EUR/USD exchange rate closed near 1.1521, with the pair under downward pressure.

2Rabobank forecasts the pair could drop to the 1.14 level within a one-month horizon.

3USD demand is driven by safe-haven seeking and liquidity preference amid geopolitical risks in the Middle East.

Rabobank maintains its bearish short-term outlook for the EUR/USD pair, targeting a decline to the 1.14 level within a one-month horizon. Currently, the exchange rate is consolidating around the 1.1530 level as market participants closely monitor a key deadline set by Donald Trump as a potential catalyst. This relative stability follows a period of persistent downward pressure on the Euro, driven by the US Dollar's status as a primary safe-haven asset. Analysts note that while geopolitical tensions in the Middle East continue to drive demand for safety, the upcoming political deadline has introduced a new layer of market uncertainty. Consequently, the Euro is struggling to regain momentum as investors reassess their risk exposure in a liquidity-focused environment. The bank's view suggests that the overall macroeconomic climate remains favorable for continued USD strength against major peers.

6 months ago

Version History

3 additional sources confirmed this story

Version 16 months ago

What changed: EUR/USD is now consolidating around 1.1530 as market attention incorporates a specific deadline set by Trump as a key catalyst alongside existing geopolitical risks.