The EUR/USD pair was very volatile during the summer months. At the beginning of June, the pair stood at 1.07. By mid-July, EUR/USD had risen to $1.12. Economists at Erste Group Research analyze the outlook for EUR/USD.
The Dollar will be determined by the US economy
The US economy will be decisive for the evolution of the Dollar. The question is how long the strong growth will continue, despite significantly higher interest rates. Currently, demand indicators continue to point to a robust economy. However, We see signs of an imminent slowdown in several areas. These include the labor market, credit growth and the evolution of savings..
Therefore, for us a cooling of the US economy is likely over the next few months, arguing for a weaker Dollar.
EUR/USD – December 2023 in 1.14March 2024 in 1.16June 2024 in 1.19 and September 2024 in 1.19.
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.
