The economists of Societe Generale point out that two important things are needed to drive growth EUR/USD towards a range of 1.15-1.20.
The Euro needs more growth
US economists have continued to raise their GDP growth forecasts for 2023, as has been the case in most G7 economies. The exception is the Eurozone, where the consensus for growth for 2023 has dipped slightly this month. It is hard to see how the Euro can continue to rise at the recent pace of falling growth expectations.
A push towards a 1.15-1.20 range. EUR/USD will likely require two things: an improvement in Eurozone GDP growth expectations, and greater conviction that the ECB will continue to raise rates after the Fed has finished.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
