Still further modest upside – MUFG

Economists at MUFG Bank analyze EUR/USD outlook after the ECB policy update.

Further near-term gains for cyclical currencies

We believe the dovish policy shift from the Fed will be more important for FX markets leaving the door open for EUR/USD to strengthen modestly through the rest of this year even if the ECB hiking cycle has ended.

The developments are supportive for further near-term gains for cyclical currencies (commodity & EM FX) against the Euro and US Dollar. 

See – EUR/USD: Euro will be able to appreciate over the coming months – Commerzbank