Home EUR/USD to drop substantially towards 1.15 by year-end – ABN Amro
FXStreet News

EUR/USD to drop substantially towards 1.15 by year-end – ABN Amro

Weaker US macro data and higher inflation have driven a fall in real yields, weighing on the dollar. EUR/USD rose to the 1.22s. Nonetheless, economists at ABN Amro expect the pair to end the year trading around 1.15 due to a dovish Federal Reserve and an American economic outperformance.

See:  EUR/USD to trend higher into the ECB policy meeting on June 10 – Rabobank

European Central Bank rate hikes to be priced out

“We think that the Fed will be less dovish than the ECB, and that ECB rate hikes will be priced out, weighing on the euro.”

“We expect US economic outperformance to support the dollar in the medium-term.”  

“Our year-end 2021 forecast for EUR/USD stands at 1.15.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.