EURUSD: Short term increase!
Updated
Hello trader, What do you think?
According to our projections, there will be a rate hike of 25 basis points in May and another rate hike of 25 basis points in June, resulting in the ECB's Deposit Rate peaking at 3.50% for this cycle. We believe that the current market pricing, which suggests a peak policy rate of approximately 3.09%, is insufficient compared to our expectations. Our optimistic outlook for the Euro's strength against the USD in the medium term is primarily driven by our confident predictions for the ECB policy.
Further ECB tightening supporting outlook for medium term strength
According to our projections, there will be a rate hike of 25 basis points in May and another rate hike of 25 basis points in June, resulting in the ECB's Deposit Rate peaking at 3.50% for this cycle. We believe that the current market pricing, which suggests a peak policy rate of approximately 3.09%, is insufficient compared to our expectations. Our optimistic outlook for the Euro's strength against the USD in the medium term is primarily driven by our confident predictions for the ECB policy.
Further ECB tightening supporting outlook for medium term strength
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