Recent weeks had brought plenty of signs that investors have been looking for bargains in risky assets. However, economists at Rabobank do not see sufficient reason to move away from their bullish USD outlook.  

USD may be approaching the later stages of its rally

“In addition to the outlook for rate increases, in our view, the USD is set to remain supported by safe-haven flows.” 

“This year, higher US interest rates have been undermining the outlook for risky assets and promoted the attraction of the safe-haven USD. Simultaneously USD strength is a constraint on global trade and world growth which feeds back into demand for USDs.” 

“The USD may be approaching the later stages of its rally, but we consider it far too soon to expect the USD to reverse course.”