The EUR/USD pair maintains its recovery momentum. The Wells Fargo economists expect the common currency to gain ground against the dollar amid further tightening by the European Central Bank.
The ECB Deposit Rate will reach a maximum of 3.50% in June of this year
“We expect a new rate hike of 25 basis points in May, followed by a final rate hike of 25 points in June, with which the ECB Deposit Rate for the current cycle would reach a maximum of 3.50%. In this context , market prices, which currently imply a maximum monetary policy rate of around 3.09%, seem light to us.”
“Our more forceful outlook for ECB policy is an important factor supporting our outlook for euro strength against the dollar over the medium 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.
