The G20 summit took place in Bali, Indonesia, on November 2022…
Euro’s forecast from Danske Bank
Information is not investment advice
According to economists from Danske Bank, the euro is still overvalued. They see the fair price at 1.16. Let’s see why.
To begin with, Danske Bank is a Danish bank, headquartered in Copenhagen. It is recognized as the largest bank in the whole of Denmark and a main retail bank in northern Europe. It is a credible bank with a huge background, therefore its forecasts are taken seriously. Danske Bank has doubts over the further euro appreciation. The main reason is the tech stocks’ boom. All major tech companies are based in the USA, therefore, all the capital flows will be headed there. Moreover, the bank believes the US equity market will keep rallying for longer and attract more and more investors. Danske maintains a EUR/USD forecast of 1.1600 in three months.
Besides, the European Central Bank doesn’t like the idea of the expensive euro as it will weigh on the EU exports and, as a result, may jeopardize the economic recovery. The euro has risen this week to almost multi-year highs but then contracted sharply amid the stronger dollar. If this trend continues, the ECB will have to take some action. According to Pictet Wealth Management, “the ECB is expected to cut its 2022 inflation forecast next week from 1.3% to 1.2% or 1.1% to reflect the deflationary impact of a stronger euro on the price of imports”. Moreover, the ECM may step up the pace of asset purchases as well. In a nutshell, the ECB will make all efforts to depreciate the euro.
EUR/USD has just bounced off the key support of 1.1800. Now it’s moving upwards to the significant resistance of 1.1850, which it has touched a few times already. If it manages to break it through, it will rise to the psychological mark of 1.1900. Support levels are at 1.1800 and 1.1770.
All eyes on the NFP report tomorrow at 15:30 MT time, as it will set the tone for the whole market for Friday and the next week as well. Stay tuned!
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus