The ING Economists they revise their profile upwards EUR/USD for 2023-2024.
The third and fourth quarters could prove more difficult for EUR/USD
“Given the importance of EUR/USD in driving currency trends globally, we no longer believe we can justify a below-consensus profile in the coming years. Instead, we expect EUR/USD to return at its fair value in the medium term, now around the 1.15 area”.
“In terms of the quarterly profile this year, a good proportion of the EUR/USD gains for the year could come in the second quarter, when we expect US core inflation to fall sharply, allowing the short end of the curve to US yield is also adjusted lower.”
“The second quarter should also be the period when China’s reopening trends pick up a bit more. However, the third and fourth quarters could prove more difficult for EUR/USD: the third quarter on the basis that the raising the US debt ceiling could become a very contentious political debate around that period and be bad for the risk environment and the fourth on the grounds that higher energy prices could hit the US again euro.”
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.
