The Euro to Dollar (EUR/USD) exchange rate has been trapped in very narrow ranges for the past few months. MUFG does expect a breakout with Fed rate cuts crucial in driving EUR/USD to 1.12 at the end of 2024. The bank notes that there has been a fluctuation in US interest-rate expectations but expects a first cut in June. Although US data has been relatively firm, MUFG expresses some concerns over the outlook, noting that credit card delinquency rates have increased while hiring intensions have faltered. In this context, it expects the Fed will eventually be more aggressive in easing policy with five rate cuts this ... (full story)