Economists at Commerzbank focus on EUR/USD outlook.
Upside potential for EUR/USD within the coming months
“Within the coming months, EUR/USD is prone to strengthen as a result of the ECB’s financial coverage is prone to be extra hawkish within the close to future and due to this fact extra enticing from a forex market perspective than that of the Fed. Initially, this obvious benefit will come from the truth that the ECB is prone to proceed elevating rates of interest whereas the Fed will not be, and later from the truth that the ECB is sticking to its most rate of interest degree whereas the Fed is prone to begin chopping charges.”
“Within the medium time period, nonetheless, the ECB might be probably not extra hawkish than the Fed. Quite the opposite, the EUR power we anticipate within the brief time period is due to this fact unlikely to be sustainable. We suspect that the turnaround within the EUR/USD alternate fee may come across the flip of the 12 months.”
Supply: Commerzbank Analysis
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