Economists at ABN Amro expect the EUR/USD pair to move downward over the coming months.
Speculative positions in the EUR are extremely large
We forecast a modest upside for the US Dollar versus the Euro for the following reasons. We expect rate cuts by the Fed and ECB next year. While most of the Fed rate cuts are expected by the market, our rate expectations for the ECB are not low The Euro should weaken in our opinion. Moreover, speculative positions in EUR are extremely large.
Our forecasts are 1.08 (end 2023) and 1.05 end 2024.
