EUR/USD: Scope for higher levels of 1.14 until year-end – Commerzbank

Economists at Commerzbank change their EUR/USD forecast. They expect the pair to climb toward 1.14 until the end of the year.

EUR/USD to fall to 1.08 by year-end 2024

“For the time being EUR is likely to benefit from the ECB’s restrictive approach whereas the Fed is likely to begin signalling rate cuts over the course of the year, which should put pressure on USD.”

“We have adjusted our EUR/USD projections and see scope for higher EUR/USD levels of 1.14 until year-end.”

“However, we stick to our view that EUR/USD will weaken over the course of 2024, as once it becomes clear that inflation in the Eurozone will not ease as quickly, ECB monetary policy will not seem that restrictive any longer. That is likely to put pressure on EUR, so we expect a fall in EUR/USD to 1.08 by year-end 2024.”