The economists of Danske Bank They don’t change their view of the Fed, they don’t see rate cuts this year and they expect EUR/USD to fall to 1.06 in six months.
A 50 basis point rate hike by the ECB could boost EUR/USD in the short term
“For now, we stand by our view that the Fed will keep rates on hold for the rest of the year“.
“With markets pricing in around 72 basis points for cuts for the rest of the year, if we are correct in our forecast, relative rates should provide broad support for the USD in the second half. Combined with relative terms of trade , growth differentials and relative unit labor cost, we expect the EUR/USD pair to fall towards 1.06 in 6 months. That being said, a 50 basis point rate hike by the ECB today could push the cross higher in the near term.”
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.
