EUR/USD to drop substantially towards 1.15 by year-end – ABN Amro

FXStreet Insights Team FXStreet

Weaker US macro data and higher inflation have driven a fall in real yields, weighing on the dollar. EUR/USD rose to the 1.22s. Nonetheless, economists at ABN Amro expect the pair to end the year trading around 1.15 due to a dovish Federal Reserve and an American economic outperformance.

See: EUR/USD to trend higher into the ECB policy meeting on June 10 – Rabobank

European Central Bank rate hikes to be priced out

“We think that the Fed will be less dovish than the ECB, and that ECB rate hikes will be priced out, weighing on the euro.”

“We expect US economic outperformance to support the dollar in the medium-term.”

“Our year-end 2021 forecast for EUR/USD stands at 1.15.”

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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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