The ECB hiked rates to a record high of 4% last week, its 10th consecutive increase. The decision was accompanied by an increase in the central bank’s inflation projections, which are now expected to average 5.6% this year and 3.2% in 2024-still well above the 2% target.
We remain most preferred on the Euro and least preferred on the US Dollar. The ECB’s move narrows the rate premium offered by the US, and we don’t expect rate cuts from the Eurozone’s central bank until at least June next year. An acceleration of quantitative tightening, with the ECB increasing the pace at which it shrinks its balance sheet, is also possible early next year.
We expect EUR/USD to rise to 1.12 by the end of the year.
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.