While the US dollar may temporarily rise in the coming months, the overall picture is that the EUR/USD will rise, economists at Nordea report.
US Dollar Enjoys Temporary Gains As Financial Conditions Tighten
“We believe EUR/USD will fall to 1.03 regularly through the summer as the Federal Reserve and other central banks continue to raise interest rates more than previously expected and tighten financial conditions. means a new period of risk-off, an environment in which the USD should thrive.”
“Over the long term, the US dollar is still weak.
“Overall, we believe global factors will favor a slightly weaker US dollar over the longer term, with EUR/USD reaching 1.15 by the end of next year. Risks rise, so after all, the US dollar may rebound sooner than we currently expect.”