FXStreet reports that analysts at Natixis discuss EUR/USD prospects.
“We have the following configuration: A rapid deterioration in US foreign trade due to the strong stimulation of domestic demand through expansionary fiscal and monetary policies. A faster return to full employment than in the eurozone. The cyclical recovery is taking place faster in the US than in the euro zone following the COVID-19 crisis: this means that the US will return to full employment faster than the eurozone. We should therefore expect the expansionary monetary policies to end earlier in the US than in the eurozone.”
“If tapering takes place from spring 2022 in the US and from the end of 2022 in the eurozone, there will be a gap between the two countries' monetary policies during 2022, with a more expansionary monetary policy in the eurozone. We should therefore expect: A long-term trend depreciation of the dollar; Interrupted in 2022 by the monetary policy gap between the US and the eurozone, as monetary policy will temporarily be more expansionary in the eurozone.”
© 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.