The EURUSD has gone up a lot. The pair could go even higher until early December, however, Nordean economists they expect the EURUSD to fall to 0.97 in three months.
Fed will keep rates higher for longer than markets expect
“In the very short term, until early December, the dollar could weaken further and the EURUSD could rise to 1.05. The USD tends to weaken in times of risk appetite, as we may see in the coming weeks.”
“Although EURUSD could rally into early December, we still see EURUSD lower at 097 in three months.”
“The Fed’s fight against inflation is not over yet, given high wage growth and tight labor markets. The Fed may have to raise rates next year more than we and the markets currently expect. Euro-Dollar interest spreads are likely to move in favor of lower EURUSD In addition, higher rates also imply that risk aversion could re-enter the picture in the next three months, would lead to a lower EURUSD.”
Source: Fx Street
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