EUR/USD should stay near current levels next year – ABN Amro

FXStreet Insights Team FXStreet

Economists at ABN Amro expect the EUR/USD pair to hover around current levels throughout next year.

EUR/USD to stay in a 1.05-1.10 range in 2025

For 2024, we expect the same amount of interest rate cuts by the Fed and the ECB. In both cases, our base case calls for more substantial rate cuts than markets currently expect. The difference between our forecasts and market pricing is around the same for both central banks. So, if our views on both Fed and ECB policies play out, EUR/USD should stay near current levels.

For 2025 we think that the ECB and Fed will continue to ease in 2025 by the same amount. Therefore, we expect EUR/USD to stay in a 1.05-1.10 range waiting for another driver to present itself to cause a more directional move.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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