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May 2, 2025

EUR/USD Outlook: Short-term Pullback Expected, Dollar Weakness Ahead

Rabobank anticipates that the EUR/USD pair will experience a slight pullback towards 1.10 in the near term. This prediction comes in light of recent trade deal progress and dollar short-covering. However, over the next year, the forecast indicates a rise toward 1.15. The expectation stems from a deterioration in US economic fundamentals coupled with the anticipated financial stimulus in the Eurozone, according to Jane Foley from Rabobank. The recent market fluctuations related to the Trump administration also play a significant role in this outlook. Traders should keep an eye on these developments to gauge future movements in the EUR/USD exchange rate.

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