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

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.