Ahead of what could be a very aggressive Fed tightening cycle, analysts at ING They remain bullish against the dollar. As for EUR/USD, the recent hawkish turn by the European Central Bank (ECB) suggests that the pair will probably move in a wide range of 1.10-1.15 this year.
March will be a crucial month for the financial markets
“On March 10th the ECB will publish new inflation forecasts and potentially open the door to an interest rate hike in the fourth quarter. On March 16th the Fed will publish its point projections and possibly announce a rate hike.” 50 basis points Currently, we expect five hikes in total from the Fed in 2022“.
“We hope that volatility continues to rise“.
“Our preference now is for EUR/USD to move in a trading range between 1.10/1.12 to 1.15 as we prepare for major central bank tightening.”
Source: Fx Street
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