USD: Changing fortunes? - Rabobank

The USD has been performing well since the start of February and since the beginning of last month, the safe haven JPY is the only G10 currency to have outperformed the USD, notes the research team at Rabobank. 

Key Quotes

“In the same period the USD has outperformed all currencies in the LATAM region and most in E. Europe and Asia.  Following the downtrend that has been in place since the start of last year, there is a real risk that the USD has reached an inflexion point. We are constructive on the outlook for the greenback through the rest of the year vs. a broad basket of currencies.  While we expect the EUR to hold up better than most, we have revised down our 12 mth EUR/USD forecast from 1.28 to 1.21 although we see a continuation of choppy range trading dominating EUR/USD in the months ahead.”