Euro Stuck in Choppy Range as Dollar Soars on Safe Haven Demand

Rabobank's Senior FX Strategist Jane Foley warns that despite the European Central Bank's (ECB) hawkish tone after its July meeting, the Euro (EUR) failed to gain support.

The EUR/USD pair has been trading in a choppy range around 1.14 since the meeting, and Foley expects this trend to continue for at least the next three months.

Foley notes that safe haven flows and hawkish expectations regarding the Federal Reserve (Fed) have contributed to the US Dollar's strength, making it harder for the EUR to gain traction.

The ongoing intensification of the Iran war has boosted safe haven flows, further supporting the USD. Foley believes this trend will continue, at least in the short term.