EUR/USD to fall if Fed holds rates unchanged for longer – Nordea

FXStreet Insights Team FXStreet

Over the past month, EUR/USD has been trending higher since the bottom at 1.0700 and has been closing in on the 1.1000 level. Economists at Nordea analyze the pair’s outlook.

The next big move for EUR/USD to be lower in the months to come

For the USD, later rate cut signals from the Fed should be supportive.

We expect the next big move for EUR/USD to be lower in the months to come, and 1.0500 could be in sight again.

Moreover, the upcoming liquidity situation in the US could also be supportive for the USD in the upcoming quarter.

Overall, it seems EUR/USD will remain range bound in the 1.0500-1.1000 area so long as (expectations for) monetary policy for both do not diverge to a larger degree.

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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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