EUR/USD to plunge towards 1.10 through 2022, scope for USD/JPY to skyrocket as high as 120 – ING
|In 2022, economists at ING expect the dollar to stay strong. EUR/USD and USD/JPY could trade at 1.10 and 120.00, respectively.
Sharper Fed tightening cycle to propel the greenback
“Assuming that Omicron risks play out closer to the benign end of the spectrum, we look for the sharper Fed tightening cycle to return as a theme in early 2022. This should be good news for the dollar.”
“In a world where the European and Japanese central banks are late to tighten – or have the biggest cause to pause – dollar gains should largely come at the expense of the low-yielding currencies. Here EUR/USD can trade to 1.10 through the year and USD/JPY potentially as high as 120.”
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.