BUY EUR/USD 3m call RKO 1.22

We have recently revised our view on the FX forecasts. We expect the EUR/USD to appreciate to 1.20 this year, compared with 1.15 initially forecast. The EUR/USD's appreciation will mainly result from the dollar's continued depreciation against most currencies due to the expected sharp deceleration in US growth and still in reaction to the continuing flows out of the US assets. Despite the 90-day pause on reciprocal tariffs and tariff relief in some sectors, economic uncertainties will continue to dominate, weighing on US growth and assets. The euro will benefit from the dollar weakness and the reallocation out of the US assets.