#EURUSD @ 1.08520 Interest rate differentials point to a higher – Nordea

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

EUR/USD came briefly above 1.10 this week before falling to just below 1.09 today. Economists at Nordea note that the rate differentials continue to point toward a higher EUR/USD ahead.

“Given that the ECB has had room for more positive rate surprises than the Fed, a higher EUR/USD is understandable.”

“The better outlook on the Euro Area’s energy balance also points toward a lower risk-premium on the Euro.”

“In the short-term, we see EUR/USD moving about sideways as markets reprice expectations on both the Fed and the ECB, however, it is clear that the rate differentials continue to point toward a higher EUR/USD ahead. China’s reopening also points in that direction due to a better outlook for the global economy.”

[/s2If]
Join Our Telegram Group