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After the GBP the USD is the second-worst performing G10 currency in the month to date.  Economists at Rabobank expect choppy trading conditions for the USD and forecast EUR/USD and USD/JPY moving between a 1.17-20 and 108-100 range respectively.    

Profit-taking on long USD positions has been favoured  

“While profit-taking is perhaps inevitable after a strong move in prices, the fundamentals behind the USD remain significantly better than at the start of the year.   The strength of the fiscal spending from the Biden Administration and the optimism surrounding the US’s vaccine roll-out has shifted confidence in the outlook for the US economy, particularly given the disappointments over the vaccine roll-out in the EU and in Japan.”  

“In the months ahead, we expect choppy conditions in G10 markets with EUR/USD potentially trading a 1.17 to 1.20 range and USD/JPY potentially moving in a 108 to 110 range.”