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

The durability of the United States economy in the last few years was analyzed by numerous financiers as a presentation of United States ‘exceptionalism’, Rabobank’s FX expert Jane Foley notes.

Greenback’s international lead stays undamaged in the meantime

” The rise in United States economic downturn fears that followed Trump’s tariff statements on April 2 triggered a quick exit from ‘exceptionalism’ trades, which subdued the USD’s standard safe-haven destination. While other currencies are set to continue trying the USD’s supremacy as the international reserve currency, the greenback is set to keep a clear lead for several years to come.”

” In line with this, we anticipate that the USD’s safe house character can be brought back in the months ahead. The specific timing will likely depend upon whether United States economic downturn dangers increase or distribute, because this will direct net circulations in and out of USD possessions. On the back of the weakened outlook for the United States economy we keep 12-month projections of EUR/USD1.15 and USD/JPY140.00.”