The USD will likely continue to be buffered by the movement in US yields in the weeks ahead. That said, we would expect any surge in safe-haven demand to benefit the USD, even if this also drives down treasury yields.

Despite the anticipated efforts by the ECB to promote a higher for longer outlook for European rates, in our view, the weakness of the Eurozone economy suggests scope for further downside pressure on the EUR. 

We maintain a forecast of EUR/USD 1.02 on a three-month view.