The US Dollar is likely to strengthen, in the view of economists at Rabobank.

USD – safe haven of choice

“It is our view that the USD remains a primary safe haven and that it will retain this status for many years to come.”

“It is our view that Fed rates will be higher for longer than the market currently expects. We also see risk of higher for longer rates from a number of other G10 central banks. This can only serve to enhance the risk of other financial related crisis in the coming months, which could trigger further safe haven USD demand.”

“We retain our six-month forecast of EUR/USD 1.06.”