Two key prerequisites for substantial progress above 1.10 in EUR/USD and 1.25 in GBP/USD – BMO
|Economists at the bank of Montreal point out prerequisites needed to lift EUR/USD and GBP/USD above 1.10 and 1.25, respectively.
Reduced risk of economic hard landing in Europe provides better support to EUR and GBP
“It’s one month into 2023 and the reduced risk of an economic hard landing in Europe is providing better support to the EUR and the GBP. However, for sustained appreciation vs the USD, we think these currencies need a very sold risk appetite picture, and continued improvement in inflation.”
“Progress in the Ukraine war, limited disappointment in energy prices, and smooth global trade (‘Goldilocks’) may also be prerequisites for substantial progress above 1.10 in EUR/USD and 1.25 in GBP/USD.”
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.