- Analytics
- News and Tools
- Market News
- EUR/USD to rise as Fed set to move away from its final interest rate level first – Commerzbank
EUR/USD to rise as Fed set to move away from its final interest rate level first – Commerzbank
The end of the Fed and ECB rate hike cycle is in sight. Economists at Commerzbank expect the Fed to switch to rate cuts soon thereafter, while the ECB will leave its interest rate level unchanged. This will benefit the Euro.
Lower EUR/USD levels are not to be expected again until 2024
“We expect first rate cuts for the Fed in H2/2023 (and more in 2024), but none for the ECB. This should weigh on the Dollar and boost EUR/USD.”
“Lower energy prices also argue for higher EUR/USD levels. On the one hand, the terms-of-trade effect no longer supports the Dollar. On the other hand, an energy crisis in Europe has probably been averted and the recession in the euro area is likely to turn out less severe than had been expected in the meantime. This, too, is supporting the Euro.”
“Lower EUR/USD levels are not to be expected again until 2024, when the recessions in Europe and the US are over, when it becomes clear that inflation will not return to anywhere near the central bank targets and when, accordingly, the central banks have to tighten their monetary policies again. Then the Fed, as a more aggressive central bank, should make the Dollar look more attractive again.”
© 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
