EURUSD could rise to 1.05 in the short-term, but three-month forecast stands at 0.97 – Nordea
EURUSD has risen sharply. The pair could rise even more until the beginning of December, however, economists at Nordea expect EURUSD to fall to 0.97 in three months.
The Fed will keep rates higher for longer than what markets expect
“In the very short-term, until the start of December, the USD could weaken more with EURUSD rising to 1.05. The USD does usually weaken during times of risk-on as we could see in the weeks to come.”
“While EURUSD could rise until the start of December, we still see a lower EURUSD at 0.97 in three months.”
“The Fed's fight against inflation is still not yet over given the high wage growth and tightness in the labour market. The Fed could need to hike rates more next year than we and markets currently expect. The interest differentials between EUR and USD are likely to move in favour of a lower EURUSD. Moreover, higher rates also imply that risk-off could re-enter the arena in the next three months, leading to a lower EURUSD.”
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FXStreet Insights Team
FXStreet
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