USD

Over the past few months, the USD has been driven both by safe haven flows and by a change in market expectations regarding Fed policy.

The DXY dollar index is trading this morning well above its spring low and EUR/USD has already slipped back from the day’s best levels.

EUR/USD may be in danger of trading in a more lacklustre fashion compared with 2025.

EUR/USD traded with a slight upside bias through the last week or so of May and is currently positioned just below the 50-, 100- and 200-day smas.

Rabobank’s forecasts for EUR/USD for the remainder of the year are not as bearish for the USD as the market consensus.

The DXY index has traded a little higher in the past few sessions but remains in the bottom part of the range drawn since the start of the Iran war.