ECB Rate-Hike Prospects, Solid Economy Should Support Euro
Dow Jones
Yesterday
1456 GMT - The euro will be driven largely by relative growth considerations and interest-rate expectations, which should provide support for the currency going forward, MUFG currency analysts say in a note. "Recent signs of economic resilience and the continued willingness of the European Central Bank to respond to upside inflation risks will continue to provide support for euro/dollar," they say. These factors will be more important than political risks, including German state elections in September and the French presidential election in April 2027, they say. MUFG forecasts the euro to rise to $1.1800 by end-2026 and then $1.2000 by the end of the first quarter of 2027, compared with $1.1602 currently.
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