Rabobank forecasts a choppy range for EUR/USD around 1.14 over the next 1-3 months amid safe-haven USD demand.
EUR/USD remains range-bound near 1.14 as the Dollar’s safe-haven appeal offsets the European Central Bank’s hawkish July meeting tone. Speculative positioning data shows low confidence in the Euro since the Iran war escalation, while Fed rate expectations support the USD.
The ECB’s hawkish stance failed to lift the Euro, contrasting with prior periods where policy shifts drove sharper moves. Safe-haven flows and Fed policy bets continue to dominate, limiting EUR upside despite recent ECB signals.
Rabobank maintains a 1-3 month outlook for EUR/USD to trade in a tight range, citing persistent geopolitical risks and divergent central bank expectations.