EUR/USD to gravitate to the lower end of the 1.0500-1.1250 range – Credit Suisse
|Economists at Credit Suisse analyze EUR/USD outlook and expect the pair to head toward the 1.0500 level.
The market has seen countervailing forces face off in EUR/USD
Our predicted EUR/USD 1.0500-1.1250 range for Q2 looks valid again.
In 2023 the market has seen countervailing forces face off in EUR/USD. On the one hand, a hawkish ECB amid continued core inflation risk in the Euro-area have underpinned the EUR. On the other, the USD keeps benefiting from markets having underestimated inflation persistence and economic resilience in the US, alongside a continued carry premium.
As Euro-area data start to soften, we expect the pair to gravitate to the lower end of this range.
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