EUR/USD struggled to breach the 1.1000 level last year. Economists at BNP Paribas analyze the pair’s outlook for 2024.
Bullish scenario for EUR/USD in 2024
Although the ECB might initiate rate cuts before the Fed, we forecast fewer ECB cuts. This difference in monetary policy trajectories could favor EUR/USD through the interest rate differential.
Eurozone investors, currently overweight in US assets, might adjust their investment strategies. There’s a potential shift towards reducing foreign debt purchases and increasing local asset holdings. This change could decrease the demand for US assets, indirectly benefiting EUR/USD.
We expect EUR/USD to reach 1.1500 by the end of 2024.
Source: https://www.fxstreet.com/news/eur-usd-to-reach-11500-by-year-end-bnp-paribas-202401181049