Economists at Rabobank believe the US dollar has room to weaken in the next weeks, however, EUR/USD may have already priced in the improvement in global conditions and expect a return to risk-off environment to lead the pair below 1.10 by year-end. Key quotes “The value of the USD is likely to fall further if there is additional rotation back into EM assets. However, it could be argued that the risk trade is, or could soon become overvalued, at this point there is likely to be another wave of demand for the safe-haven USD.” “Although the bounce in asset prices has been achieved with the support of copious amounts of central bank and fiscal support, these policies are unlikely to be able to protect all businesses from the developing demand shock. Already this can be seen in rising unemployment rate and growing savings ratios. Although investors have largely written off Q2 economic data as inevitably appalling, Q3 data still has the capacity to shock.” “While we see the potential for the USD to weaken further in the weeks ahead if risk appetite stays strong, on a three-to-six month view we see shock for another round of safe-haven buying which could take EUR/USD back below 1.10 before year-end.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: New Home Sales increase by 16.6% in May vs. 3.5% expected FX Street 2 years Economists at Rabobank believe the US dollar has room to weaken in the next weeks, however, EUR/USD may have already priced in the improvement in global conditions and expect a return to risk-off environment to lead the pair below 1.10 by year-end. Key quotes “The value of the USD is likely to fall further if there is additional rotation back into EM assets. However, it could be argued that the risk trade is, or could soon become overvalued, at this point there is likely to be another wave of demand for the safe-haven USD.” “Although the bounce in asset prices… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.