The safe-haven US dollar has given back some ground versus the euro. Still, economists at Rabobank expect the EUR/USD pair to edge lower towards 1.11 in the coming months before paring back losses later in the year.

Some indigestion on attempts to break below 1.13

“The market is already positioned long of USD and this appears to be creating some indigestion on attempts to break below EUR/USD 1.13.”

“Given the ongoing geopolitical risks, signs that the ECB will remain cautious on policy tightening and expectations that the Fed will be hiking rates in just a few weeks’ time, we see scope for EUR/USD to edge towards 1.11 during H1 before turning higher later in the year.”