EUR/USD: Euro to stay weaker for longer in a 1.09-1.14 average range – Citi
|The Euro faces multiple headwinds. Economists at Citi expect the EUR/USD pair to stay in a 1.09-1.14 average range.
ECB is expected to hike rates to 2.5%
“The single currency zone faces an unfavorable mix of lower growth, high inflation and rising rates in the months ahead.”
“The ECB is expected to hike rates to 2.5% amid fears of a severe winter’s effect on energy consumption, China’s delayed recovery and likely recession in Europe. These forces suggest the Euro staying weaker for longer in a 1.09-1.14 average range.”
“The caveat is the timing of a turn in the US Dollar. Should the Fed turn more dovish in its monetary policy, the USD could weaken across the board. The timing of such a move remains difficult to forecast, however.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.