The forecast come via ING. So much can happen between now and then, of course, but the bank looking for:
- medium term EUR/USD forecast 1.20 for end 2020 from 1.25 previously
- expect EUR/USD strength next year
we expect
- (1) growth differential to peak;
- (2) interest rate differentials to start narrowing;
- (3) US twin deficit to start biting;
- (4) EZ balance payment to support EUR;
- and (5) cheap valuation to kick in.
- Nonetheless, our near term EUR/USD outlook remains unchanged and we expect the cross to struggle over the next 6 months (bottoming at 1.10)
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A look back:
