The greenback could be relatively stable in the near term. But an extended period of US Dollar depreciation is fast approaching, wchi should lift EUR/USD to 1.13 by the end of the year, economists at Wells Fargo report.
Eventual ECB easing to be later and more gradual than that of the Fed
“We expect ECB rate hikes will outpace those of the Fed in the near term and, with the Eurozone economy proving quite resilient, we expect eventual ECB easing to be later and more gradual than that of the Fed.”
“After the period of brief greenback stability in early 2023, we think the prospects for the Euro will brighten, and expect the EUR/USD exchange rate to reach 1.13 by the end of this year.”
EUR/USD stabilizes above 1.0750, looks to post modest weekly gains
Following the sharp decline witnessed in the European session, EUR/USD has managed to recover modestly and seems to have stabilized above 1.0750 amid an improvement seen in market mood. The pair remains on track to end the week modestly higher.
GBP/USD holds above 1.2200 heading into the weekend
GBP/USD retraced a small part of its daily decline in the American session after having tested 1.2200 earlier in the day. The US Dollar has lost some strength with Wall Street’s main indexes rebounding from opening lows, allowing the pair to limit its losses.
Gold retreats after facing resistance at $2,000
Gold price climbed above $2,000 in the early American session but reversed its direction. With the benchmark 10-year US Treasury bond yield recovering from daily lows after Wall Street’s opening bell, XAU/USD struggles to keep its footing and trades at around $1,990.
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