This week will be the week. The decisions of the central banks of the Fed and the ECB will be known. Commerzbank economists analyze the outlook for EUR/USD.
Will the dollar be able to defend its gains?
That the dollar is capable of defending the gains of recent weeks will largely depend on how clearly the Fed leaves the door open for future rate hikes and of course, whether the ECB closes the door to further rate hikes Thursday and to what extent.
Given the great uncertainty about how quickly and to what extent the rate hikes already implemented will affect the real economy in the US and the Eurozone, it is quite plausible that the ECB and Fed do not want to commit to a predetermined path at this time. This means that at the end of the week we may not know anything else and that EUR/USD levels around 1.07/1.08 become a new “wait and see” level.
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.
