EUR/USD to continue trading within 1.0500-1.1000 range in the near term – Goldman Sachs

EUR/USD has been trading within a narrow band between 1.0500 and 1.1000 since December 2022. Economists at Goldman Sachs analyze the pair’s outlook.

Significant economic or policy shifts are necessary to catalyze a breakout in either direction

EUR/USD has been trading within a tight range of 1.0500 to 1.1000 for several months. We expect this pattern to persist in the near term. Significant economic or policy shifts are necessary to catalyze a breakout in either direction.

A more compelling case for a breakout in the EUR/USD pair would likely stem from either a notable divergence in monetary policy between the European Central Bank and the Federal Reserve or a convergence in the economic cycles of the Eurozone and the United States.

 

Source: https://www.fxstreet.com/news/eur-usd-to-continue-trading-within-10500-11000-range-in-the-near-term-goldman-sachs-202402281134