EUR/USD benefited from broad-based US dollar weakness and rose above 1.0900. For now, the EUR/USD lower end still unattractive, Commerzbank economists say.
USD outlook hangs in the balance
“As long as everything points to a recession, the market is unlikely to reconsider its expectation that the Fed will lower interest rates again in the second half of the year, which is the basis for the current weakness of the dollar. For now, the lower end of EUR/USD remains unattractive.”
“Simply put, it will still be a while until it becomes clear whether the economy cools enough to control upside risks to inflation, as the Fed seems to expect, or strong enough that the Fed has to consider further rate cuts.” rates to meet its full employment target, as the market is anticipating. That makes real economic data more meaningful; as a result, the USD outlook hangs in the balance.”
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.
