📝Expect EUR/USD to Rise to 1.20 By 2H: Rabobank

Currencies of creditor countries have been the beneficiaries. This is evidenced not just in this year’s gains in the JPY and the EUR vs. the USD but also in the rallies in currencies such as the TWD and SGD.

How far the pressure on the USD will extend depends on the extent to which the policies of the current US administration undermine the growth potential of the US and erode the trust of its trading partners and allies. It also depends on how fast the US’s trading partners can fix their own structural issues.

While we still see scope for profit-taking in favour of the USD on a 1-to-3-month view, we now see this as likely to be more modest than our previous forecasts. We continue to see EUR/USD rising to 1.20 around H2 next year and see scope for USD/JPY to reach around 135.00 in that time frame. - Rabobank