Euro dollars
Economists at Commerzbank discussed the expected decisions of the European Central Bank and the Federal Reserve Board and their repercussions on the EUR/USD pair during the coming period, as the European Central Bank is expected to raise interest again during next June, and this may push the euro dollar to rise during the second half of the year. On the condition that the US Federal Reserve cut interest rates.
And the German bank experts added that the European Central Bank will remain strong with regard to the interest rate, but in the long term, the strength of the euro-dollar is unlikely to continue, as the European Central Bank is likely to succeed in controlling inflation to a lesser extent than the US Federal Reserve in the long term, Regardless of which of the two central banks offers the highest real interest rate, it is likely to send the EUR/USD lower.
-Earlier, economists at OCBC Bank saw that the euro-dollar pair is expected to face downward pressures during the coming period, especially since the markets began to price the European interest rate hike lower, and the final European interest rate peak was lowered.
-Experts at the Singaporean bank pointed out that the decline in the pace of European rate hikes does not represent a downward shift in the ECB’s hawkish rhetoric as officials are still looking for more monetary tightening despite the Fed’s possible halt in rate hikes. The European Central Bank may also accelerate the exit from the monetary easing program.
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OCBC Bank experts have a negative view of the EURUSD pair
