Analysts at Bank of America revised down their previous expectations for key European currencies – the euro and the pound sterling.

„A sustained elevated core inflation is pushing the Fed into a faster, steeper and longer rate hike cycle, and that process is pushing the dollar up across the spectrum of the foreign exchange market,” said strategists at Bank of America Corp. Athanasios Vamvakidis, John Shin and Adarsh ​​Sinha.

BofA has updated its Q4 2022 EUR/USD forecast to 0.95 from previous expectations of 1.05.

The deepening energy crisis in Europe and the escalation of the conflict in Ukraine are also putting pressure on the single currency.

“We have already raised our USD/JPY and USD/CAD forecasts, and now we expect the GBP/USD pair to approach parity at the end of the year,” the experts say.

The US dollar is likely to remain at its multi-year high in the medium term.

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany.