EUR/USD to end the year at 0.95 and linger around such levels into the start 2023 – BofA
Economists at the Bank of America Global Research expect the FOMC policy decision to support the US dollar. Therefore, they forecast EUR/USD at 0.95 by the end of the year.
Fed's announcement to continue to be supportive for the USD
“We expect the Fed to raise its target range for the federal funds rate by 75 bps in November to 3.75-4.0%. In our view, the November FOC meeting is not about the November policy rate decision. Instead, the meeting is about future policy rate guidance and what to expect in December and beyond.”
“We expect Chair Powell to open the door to a downshift in December by mentioning the debate that took place in his press conference. However, he will likely maintain optionality by emphasizing that the Fed will remain data dependent and that no decision was made.”
"We look for the Federal Reserve's announcement to continue to be supportive for the USD in the near-term.”
“With the USD at around 40-year highs, we expect EUR/USD to end the year at 0.95 and linger around such levels into the start of next year.”
See – Fed Preview: Forecasts from 13 major banks, the last big hike for now?
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FXStreet Insights Team
FXStreet
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