- Analytics
- News and Tools
- Market News
- EUR/USD to nosedive to 1.15 in coming months on strong US economic recovery - Danske Bank
EUR/USD to nosedive to 1.15 in coming months on strong US economic recovery - Danske Bank
FXStreet notes that EUR/USD has turned more cyclical and moves lower on US-EU relative macro surprises and higher US real rates. Economists at Danske Bank take into account a high likelihood of a very strong US recovery vis-à-vis EU. In addition, Chinese slowing is a drag on the EUR-leg. Therefore, the EUR/USD pair is forecast at 1.15 in 12 months.
“Expectations are for a strong US economic recovery as fiscal policy has been eased and vaccinations are moving fast.”
“We are seeing clear signs the Chinese tailwind is slowing which will likely affect Europe more negatively than the US. The US will hence likely be outperforming both Europe and Asia on growth in 2021.”
“We are more optimistic than Fed on both growth and employment and expect the Fed to start talking about tapering of QE in Q4 21 and announce the actual start of tapering at the January 2022 meeting. Meanwhile, the ECB is unlikely to change any parameters. Together, this divergence of monetary policy will be negative for EUR/USD.”
“We forecast EUR/USD will continue to move lower the coming year and see the cross in 1.19 in 1M, 1.18 in 3M, 1.17 in 6M, and 1.15 in 12M.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
