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Nordea: EUR/USD To Dip Below 1.05 Before A Tentative Rebound
Nordea expects that Euro to Dollar (EUR/USD) exchange rate will come under pressure as the ECB cuts rates before the Federal Reserve. It forecasts a decline to 1.04 in three months before a very tentative recovery and an advance to 1.10 at the end of 2025. EUR/USD has posted net gains to above 1.08 amid evidence of a slightly weaker US economy, but Nordea considers that the data still points to US resilience. Given inflation data, it considers that the Federal Reserve will have to be patient and need several months of positive data before making a move. In this context, it considers that September is too early and ... (full story)