EUR/USD to rise in the year to come – Nordea

FXStreet Insights Team FXStreet

Economists at Nordea expect risk-sensitive FX to benefit in 2024 with the EUR/USD pair also gaining ground.

Weaker USD due to a dovish Fed

We expect EUR/USD to rise in the year to come.

Faster rate cuts in the US than elsewhere point to more Dollar weakening. The US rate cuts should also underpin the global economy, commodity and energy prices and risk sentiment. Thus, risk sensitive currencies, such as NOK and SEK, should fare better in the time to come. However, there are numerous risks on the horizon including potential government debt troubles, the US Presidential election and geopolitical challenges. Many of these could send the USD stronger than we have pencilled in.

We do expect the high volatility in the FX market to continue in the year to come.

Author

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.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.