There is a clear divergence between the prospects for interest rate policy of the Federal Reserve and the European Central Bank (ECB) in 2022. Rabobank economists expect the bullish USD to continue to advance in the first months of 2022.
Doubts about whether the USD’s bullish momentum can last all year
“We expect the USD rise to continue to advance into the first months of 2022 as the Fed reduces its bond buying program and nears its first rate hike of the cycle.”
“With a lot of good news already in price, we are concerned that the momentum behind the dollar rally may lose steam in the latter part of next year and we see the possibility that the dollar has given some ground against the EUR on the horizon. 12 months “.
“Yes OK we see a margin for the EUR / USD to trend down to the 1.10 level In the coming months, we also see the probability of a return to the 1.12 area by the end of next year. “
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