Economists at Bank of America Global Research target EUR/USD at 1.05 by the first half of 2023 and 1.10 by year-end.Inflation is likely to imply near-term stability and upside for USD
“Inflation is likely to imply near-term stability and upside for USD, given low unemployment and inertia for the core. Still, we look for that upside to be more limited, with our 1.05 focal point for the first half of this year for EUR/USD.”
“We hold our general FX views for G10, and see USD overvaluation as guiding our longer-term outlook, including our forecast of 1.10 for end-of-year EUR/USD.”
EUR/USD regains 1.0550 ahead of US data
EUR/USD is rising above 1.0550 in early European trading. The pair is helped by renewed US Dollar selling, as European markets open higher, despite expectations of higher rates and geopolitical risks. The focus shifts to the US Durable Goods and Housing data.
GBP/USD recovers above 1.1950, eyes on Brexit deal announcement
GBP/USD is trading above 1.1950, recovering ground ahead of a potential Brexit deal due to be announced later this Monday. An improvement in the market mood is weighing on the US Dollar amid sluggish US Treasury bond yields. Encouraging Brexit updates support the Pound Sterling.
Gold price finds buyers near $1,805 but not out of the woods yet
Gold price is consolidating just above $1,800, having hit the lowest level so far this year. Gold bears are taking a breather before the next push lower, as they await a fresh batch of United States economic data for a fresh boost.
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