On Wednesday, the EUR/USD closed at its highest level since mid-August. Nevertheless, Rabobank economists they expect the pair to fall towards 0.95 in the next month.
The strength of the dollar will remain for about six more months
“Before the Jackson Hole meetings, the market was expecting an ECB rate hike of 1% for the October meeting, and these expectations have only increased since then. However, rate hikes have not will go a long way to support the euro against the dollar, as investors are likely to remain focused on stagflation risks in the euro zone and given the safe-haven role of the dollar.”
“We continue to expect the broad-based USD strength to continue for another six months or so.”
“We maintain our target of 0.95-EUR/USD in one month.”
Source: Fx Street
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