EUR/USD to tank to the 1.05 level by end-2022 – ABN Amro
|Economists at ABN Amro expect more weakness in EUR/USD. They forecast the pair at 1.05 and 1.00 by the end of 2022 and 2023, respectively.
Significant policy divergence between the Fed and the ECB over the coming years
“We now expect that the Fed will begin hiking interest rates in March 2022 and to hike four times in 2022.”
“We believe that the ECB is facing a different set of macroeconomic circumstances than faced by the US central bank. The ECB has also explicitly ruled out a rate hike in 2022 and has hinted that it could well be ‘on hold’ for much longer.”
“Our forecast for EUR/USD at year-end 2022 is 1.05 and 1.00 for year-end 2023.”
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